How many times do you plan to buy a home during your entire lifetime?

For most of us, the number is somewhere between 3 and 5. It certainly doesn’t happen often enough to make us experts on the process.

Real estate agents, on the other hand, may handle 3-5 purchases per month. This experience makes them an invaluable resource to homebuyers.

Before you think about handling your purchase on your own, consider these 3 serious dangers of buying without a real estate agent.

Risk #1.) Overpaying for your Home

Many buyers make the mistake of thinking that the listing price always reflects the real value of a home.

Real estate agents know better. They know how to value real estate. They’ve had extensive practice in finding and analyzing comparable properties to determine the fair market value of any home.

Your buyer’s agent can tell you what a home is really worth before you make an offer on it. This can save you from accidentally overpaying for your home.

Good agents also know that fair market value isn’t a single number. It’s a range, with room to negotiate. Armed with their local market knowledge, they can negotiate on your behalf for the best possible price.

Risk 2.) Being Overwhelmed by the inspections

Home inspections can be scary, especially for first-time buyers. Which inspections do you even need?

Inspectors note everything they can find wrong with the property. And it’s usually a sizable list, even on the best home. Your buyer’s agent can help you prioritize the issues on the inspectors’ reports. They can help you determine which items must be addressed immediately, which items should be addressed at some point in the future, and which items are listed simply documented for your information.

They can also help you renegotiate the original offer if the inspections find that immediate repairs are necessary. Perhaps you should ask the sellers to cover the cost of the roof repairs or the HVAC replacement? Your agent can help you decide.

Risk 3.) Buying the wrong home

It’s the scariest question in the home-buying process: What if I buy the wrong home?

Agents are elbow-deep in local market data all day every day. They know why some neighborhoods have high turnover. They know about upcoming development projects that can make a neighborhood more desirable. And they know about homes coming on the market days before the listings are available online.

Having an agent with all this information in your corner can prevent you from buying the wrong home. Or buying in the wrong neighborhood altogether!

Remember: the seller customarily pays all real estate commissions. It literally doesn’t cost you a penny to protect yourself against these dangers. Why risk it?

Source: Realty Executives International , Written by: Michelle Clardie

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

Here’s the dream: Your offer is perfect, you don’t need to negotiate, and you can spend the next few weeks addressing more pressing home-ownership questions, like “Why is it called wainscoting?” and “Do I want a new couch in blush or emerald green?”

And it could happen. Many sellers accept the best offer they receive, and for a variety of reasons.

But sellers are also known to reject offers for a variety of reasons. Or make counteroffers. This is especially likely if you bid low, or when you’re up against multiple competing offers.

If you do receive a counteroffer, it’s up to you to decide whether you want to accept the new contract, negotiate the terms, or walk away.

In cases such as these, look to your agent. He or she is your spirit guide. If you decide you want to negotiate — that is, make a counteroffer to the seller’s counteroffer — your agent will use their negotiating skills to help get you the best deal. This is what agents do every day.

But you’re not just going to sit there. If you understand what negotiating tactics your agent may deploy — they depend on the local market and your position — you can back them up. And cheer them on.

Here are eight rules every buyer should know before they — and their agent — start negotiating:

1.) Act Fast - Like, now!

When you receive a counteroffer, you should respond quickly — ideally within 24 hours. The longer you wait, the more space you leave for another buyer to swoop in and nab the property. Also? If a seller senses hesitation, they may decide to withdraw their counteroffer before you even have a chance to respond.

2.) Raise Your Price (Within Reason)

While you obviously don’t want to overpay for a house, you may have to up the ante — especially if you initially made a lowball offer. Lean on your agent’s expertise to determine how much money you should add to the sales price to make it more enticing to the seller.

Then, through their powers of persuasion, your agent can make the counteroffer look even more attractive by pointing out similarly priced “comps” — recently sold homes in your area that are comparable in terms of square footage and features. 

As your agent negotiates, it can feel like things are escalating quickly. It’s stressful. You may feel a sudden urge to do whatever it takes to win.

Before you go overboard, there are two things you must keep in mind:

1. You can’t exceed the monetary confines of the pre-approved mortgage you received from your lender. 
2. You shouldn’t overextend your budget.

Because your counteroffer has to be an amount you’re comfortable spending on a home. You want that new house and  to keep living your life. Plus: You’re not out of options yet.

3.) Increase Your Earnest Money Deposit

Increasing your earnest money deposit (EMD) — the sum of money you put down to prove to the seller you’re serious (i.e., “earnest”) about buying the house — is another way to show the seller you have more skin in the game. A standard EMD is typically 1% to 3% of the sales price of the home. Making a counteroffer with a 3% to 4% deposit could be what you need to persuade the seller to side with you.

4.) Demonstrate Patience About Taking Possession

Depending on the seller’s timetable, changing your proposed possession date — the date you take over the property — could butter them up, too. If the seller wants to stay in the home for a few days after closing, try offering a later possession date. You could also draw up a “rent-back” agreement, meaning the seller pays you rent for staying in the home for a set period of time after the closing date.

5.) Let Go Of A Few Contingencies - With Care

Want to give your counteroffer an even bigger boost?

Reduce the number of contingencies you’re asking for. It’s your way of saying, “Hey, look, I have fewer ways to back out,” which gives the seller more reassurance that the deal will close.

But be selective: Some contingencies are too important to give up. A home-inspection contingency — the right to have a home inspection and request repairs — gives you an out if you spot major problems with the home (and protects you from buying a total money pit).

You might waive a termite inspection if you’re in a state where the risk is lower.

But ultimately, waiving contingencies depends on your market, your loan program requirements, your risk tolerance, and the circumstances of the house in question. And if you waive contingencies and then you find a problem, the seller isn’t responsible for fixing it.

6.) Ask For Fewer Concessions 

At a mortgage settlement, home buyers have to pay closing costs for taxes, lender’s fees, and title company fees. Closing costs vary by location, but you can expect to shell out between 3% and 4% of the home’s sales price. The seller pays an additional 1% to 3%. (Smart Asset and Nerdwallet have simple calculators you can use to get a rough idea of what your closing costs might be.)

When making an initial offer, you have the option to ask the seller for concessions — a settlement paid in cash to help you offset your share of the closing costs. (This move is less feasible if you’re going up against multiple offers.)

Concessions effectively lower the seller’s net proceeds from the sale. Making a counteroffer that removes the concessions you would have otherwise received at settlement puts cash back in the seller’s pocket — and can improve your bid. 

7.) Pick Up The Cost Of The Home Warranty 

Sometimes sellers offer prospective buyers a home warranty. This is a plan that covers the cost of repairing major home appliances and systems, like the air conditioner or hot water heater, if they break down within a certain period (typically a year after closing).

A basic home warranty costs about $300 to $600 a year, according to Angie’s List. If it seems like waiving the home warranty can sweeten negotiations, but you still want the peace of mind of having one, tell the seller they don’t need to cover it — then buy it yourself.

Just keep in mind, whether you or the seller buy the warranty, you’ll need to pay the service fee (typically between $50 and $100) if something does, indeed, need to be repaired while under warranty.

Also, FYI: A home warranty is entirely separate from homeowners insurance. Homeowners insurance — the security blanket that covers your home’s structure and possessions in the event of a fire, storm, flood, or other accident — is required if you take out a mortgage. It can cost anywhere from $300 to $1,000 per year.

8.) Know When To Talk 

When negotiating with a seller, trust your gut — and your agent. If he or she says a deal is bad for you: Listen.

And if you don’t want to make any more trade-offs — and the seller won’t budge — it’s smart to walk. That can be a tough decision to make, and rightfully so! Negotiating is tough. It’s draining. 

And losing something you’ve worked hard to get can be disappointing. But don’t worry. There’s a better deal for you out there. And after those strong feelings of frustration pass, you’ll realize: Now I know how to do this.

Article Taken From houselogic.

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

With fall around the corner, you are happily saying goodbye to the bugs of summer, but don’t be fooled: there are still plenty of creepers sticking around for fall.

One of your top priorities at the beginning of the new season should be insect and rodent control. As the temperatures change, pests will be looking to migrate to warmer temperatures. The last thing you want is for these tiny creatures to find their way into the confines of your home. Fortunately, there are many ways to prevent these unwanted guests without emptying your bank account. Here are a few tips for keeping falls pests out of your home.

Seal Cracks and Holes Outside of Your House

Bugs such as ants, beetles and roaches can easily fit in between even the smallest crack in a wall. You can fill in these gaps with acrylic latex caulk, which can be purchased for under $10. Not only will the caulk keep the bugs out of this house, but it will keep the cold and wet weather out too. Roaches and other insects look for warm, moist areas to live in during the colder seasons, making the use of a durable caulk more important for added protection. For larger gaps in your home’s infrastructure, you can cut mesh screens into the necessary sizes. The use of an extra-strength adhesive will help keep the cover in place.

Maintain your Landscaping

You can find bugs crawling around in leaves, soil and mulch. It is important to make sure these common outdoor items don’t pile up during the fall season. These items will often hold moisture which will attract insects and will make it easy for them to hide. You will also want to keep all trees and bushes near your home appropriately trimmed. Any branches or bushes that come in contact with your house give insects easy access to explore the walls and windows of your home. It is also suggested that you keep any firewood at least 20 feet from the house. Firewood is an ideal resting place for small critters and an easy way of transportation inside. Only bring in what you need!

Properly Store all Food Items

Not only will bugs and small animals use your home as an escape from seasonal changes, but they will use it as a source of food as well. It is important to not let food sit out for extended periods of time. Keep anything edible inside plastic airtight containers or bags. You should also consistently clean your kitchen and dining areas. Even if your food is kept away properly, crumbs and residue from your meals will attract pests and let them know exactly where food may be. This may lead to them making more frequent visits to your kitchen.

Higher an Exterminator

Although hiring an exterminator can be pricey, it may be incredibly beneficial. If you come across a nest or infested area in your home,call a professional. A pest control professional will be able to gauge the severity of the infestation and give advice on how to solve the situation. An exterminator will also be able to remove pests with the proper technique, using certain pesticides and tools that are safe to your home and family.

This post was taken from Realty Executives International.

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com