7 Costly Mistakes Home Buyers Make
Any agent can help you buy a home, but only an expert advisor can give you the protection, advice and direction you need to reap the huge saving when buying your next home. The Average Frustrated Agent (AFA) just doesn't have the knowledge and skillset to get you the absolute best home for your needs compared to an experienced Expert Advisor can using our Smart Home Buying Strategy
This report is unique in that no other document exists like it anywhere. When you are done reading you will have a thorough understanding of what separates and Expert Advisor form the Average Frustrated Agent and how those differences can mean thousands of dollars for you on your next home purchase.
In this report you will learn:
- Why working with an Expert Advisor is truly the best way to buy a home in today's new economy
- How to take advantage of the Home Equity Swing
- Why letting your real estate agent choose the properties you see puts you at a huge disadvantage when buying the home
- What it takes to successfully manage the 80+ variables associated with buying a home
- Why you need a highly trained team of specialists rather than a single agent to help you with your entire home purchase
- How an Expert Advisor can negotiate to get you a better deal than either the Average Frustrated Agent could get for you or you could get yourself
- Why you should treat your home as in investment from the first day you start searching for it
- Why you should make sure you're working with a true expert when buying your next home or be prepared to lose time and money if you don't
- What mistakes to avoid with hiring an agent to help you with your purchase
- Where the best deals in your market are and how an Expert Advisor can help locate them before other buyers and agents do
Let's start with some statistics you may not have known about the real estate industry and buying a home; the reasons that more than 31% of home purchases fall apart before they even make it to the closing table.
- The average real estate agent only sells 6-8 homes per year
- The average real estate agent is only required to take up to 120 hours of training to begin selling real estate
- The average real estate agent spends less than $150 per month on technology and programs to help buyers locate and secure the best home for their needs
- The average real estate agent took as many as 12 weeks to get their buyers access to only12 homes over that period of time
Are you aware of what it takes to buy a home today and how to save thousands of dollars on the total purchase price? More importantly do you know what it takes to find the right home and actually have the equity stake in the home you buy the moment you leave the closing table?
The answer may be yes or no either way there is one fact above all others that you must know: there are over 80 variables that need to be managed during the home buying process. And mismanaging or worse, missing one of them could mean the difference between over paying for the home or getting the deal of a lifetime. Even worse, it could mean missing out on the best opportunity altogether.
It is important that you know how to find the right agent to help you do so. The right agent is an expert who is trained to help you locate and then secure the absolute best home for your needs and can help navigate you thru these 80+ variables.
This report will help you discover the 7 laws an expert advisor has learned that will help you understand the importance of creating a smart home buying strategy and how to avoid the 7 most costly pitfalls most buyers experience throughout the home buying process.
They say you can see desperation in someones eyes, what's worse it's said that you actually can smell the desperation. We've all been in a situation where a sales person approached us not just wanting to make a sale, but needing to make it. The desperation read on them like a book and it was uncomfortable for us as consumers to see it as it was for the sales person to approach us in such a state. It's not a pretty picture and it's really no way to do business with anyone.
You're making the biggest investment in your life and the person assisting you needs the transaction to close more than you do. It's a tough place to be in and unfortunately , it's how many homes are bought through real estate agents in today's new economy.
According to NAR in a recent survey, the average real estate agent makes a gross annual income of $49,000. Most agents are on a 50/50 split with their brokerage, meaning that before taxes and business expenses, the average frustrated agent makes about $24,500. The AFA refers to approximately 95% of th 1.02 million real estate agents in todays marketplace. The AFA sells anywheres from 6-10 homes per year and makes $24,500 to $35,000 per year before taxes and business expenses.
The AFA is an agent who only is only handling a handful of transaction per year. Typically these deals are done with family and friends. They are no treating their real estate business as a business and therefore have not invested in additional knowledge required to become an expert. The AFA is not often open to coaching or feedback on ways to improve his or her business and consequently gets mediocre to average results in their business.
The AFA's listings expire at a rate of 50% or more , and their results are often 3 to 6% worse than a good agent and has as much as 18% less than those of an expert agent, consequently they have less money to invest into growing their business.The results and reality are that the consumer is not getting the service and results they deserve when buying or selling their biggest investment.
In today's environment, roughly 31% of ratified real estate contracts fall apart long before they get to closing due tot he inexperienced and improperly trained real estate agents.
The good news is that 98% of the mistakes that doom real estate transactions can be avoided altogether. Experienced agents are experts in managing real estate transactions for their buyers and know what to do in providing a high degree of certainty that a buyer's real estate transaction will be seen all the way to closing.
The Law of Expertise states that the best way to make sure your real estate transaction ends well is to ensure that it starts well and his handled well throughout the entire process. The expert knows that where the mines are that can blow up your transaction and what it takes to avoid them. The following areas of importance are highly looked after by an expert;
Market Knowledge-Where are the best priced properties in your price range and at what price are they selling? What does the future sale opportunities of those homes look like?
Knowledge of Co-Op Agents-Which agents are the easiest to work with and will work with you , rather than against you, to help you put the deal together? Which agents have the hottest listings in your price range.
Negotiation Strategy-What's the best price and what are the terms and conditions that need to o into a contract to get you a great deal and still have your contract accepted?
Knowledge of Mortgage Options-Who are the best lenders with mortgages that offer you the best rates, terms and conditions to save you the most money on your loan?
Knowledge of Insider Deals-Where are the homes in your market place that are coming to market soon that meet your expectations that few, if any, people know about?
Inventory (MLS and Non MLS) -Where is the best cross-section of homes that are both n the MLS and listed private sale in the marketplace?
Its not just about knowing what's for sale in the market, it's about knowing the market inside and out and where to find the gems that make for the best deals based upon your specific situation.
Smart Home Buying Strategy
Very rarely does a home buyer make a purchase out of straight necessity. Yes, you may need a home but your decision a to which home you buy rest squarely on your emotional hot buttons. As agents, we want you to get excited about your purchase , but we want the results of your purchase to reflect a strategy that puts you in the best position financially overall.
The Home Equity Swing
Conventional wisdom says that you should sell your home first before you buy your next home. That way, you maximize the equity you have on the sale of your home and walk away with the biggest check possible. Then, on the buying side, you can negotiate with confidence and have the seller take you seriously because you don't have to sell your home in order to qualify to buy theirs. The process is easy, but not simple you need the proper guidance to pull it off without issues.
If you walk away with some serious equity on the sale of your home and then get a smoking hot deal on the purchase, buying a home below market value with a great mortgage the Home Equity Swing is HUGE!
The goal is to make that swing as wide as possible, put you in a positive equity position from day one and get you in touch with a lender who can get a mortgage that helps you accumulate equity as fast as possible.
Finding The Best Deals
Learn how to gain an unfair advantage over other buyers and even other real estate agents in your home search.
Like almost every other area of our lives, real estate agents and their clients can be separated into two groups, the haves and have nots. When it comes to buying a home, the haves know what to do, when to do it and they have the resources to make it happen. The have nots, well, they just don't have it period.
When searching for homes the expert will get the inside scoop on
Foreclosures, Short Sales, Vacant Homes, Distressed Sellers, FSBO if you can't locate the best deals you can't own one of them an expert will find the deals in your market.
Negotiation Offer Strategy
Why it's important to care, just not that much, in negotiating a great deal for yourself.
When it comes to negotiations for buying a home, it's important to remember that negotiation is a process, a means to an end. It is the journey of how we get to the destination, not the desitination itself. This doesn't mean losing site of the destination but rather paying more attention to how we get there, It's all about the PROCESS
What's most important is that the expert agent will always put is clients needs before his/hers in order to get the best deal possible.
An Expert can negotiate the following advantages on your behalf;
Home Warranty, Seller Paid Closing Costs, Repairs that are not financed, Walk away Leverage-let the sellers have the fear of losing a deal
Closing the Sale
The Ultimate team effort makes closing your sale smooth and an amazing experience.
A Real Estate transaction has many people involved and takes an experienced team to make things move smoothly and in a timely manner. Most agents are a single person trying to manage all these tasks, an expert agent has a team of people working to provide you with the highest level of service at every turn during the transaction. On average one transaction can be touched by 60+ people
An expert has a team to service the following issues
Time Handling of Paperwork
Closing and Settlement Preparation- a good closing coordinator
Avoidance of Potential Deal Killers- more eyes on potential problems
Negotiation of Repairs
Adherence to Proper Timelines-Financing requires processes to be done in time to make a closing happen on time our team of professionals will adhere to the process.
Lifetime Vendors Relationships
You can save money on more than one price of your home and the rate and terms of your mortgage.
Experts understand that with over 80+ factors in a real estate transaction there's a lot that can go wrong. We have established relationships with a wide variety of service providers in our area able to provide inexpensive, trustworthy and cost-effective solutions for the needs and challenges that come up when buying a home.
Whether you need assistance before or after buying a home we have a list of vendors to help
Plumbers, electrician,painters, movers locksmiths, insurance agents, etc...
When it comes to buying a home, you have a choice-a legitimate choice-as to whom you are going to choose to help you with your purchase. More than 90% of home sales today include an agent on the buying side so it is safe to say that you're more than likely going to be working with one.
You'll put yourself in a better position to get a better home for less money and way less stress along the way working with an expert experienced proven agent.
Good luck and Happy House Hunting!!