Why Use a REALTOR^®?

1. Your REALTOR® can help you determine your buying power -- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.
2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.
7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.
8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.
10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.
11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

Contact Kevin today for real results from a real professional. 507-421-7523 sannes.kevin@gmail.com


Source: www.realtor.com

Is a backup offer a good idea?

Backup Offers
One potential tactic that is becoming more popular is submitting a backup offer.  The home is already under contract with Buyer 1, but Buyer 2 submits a contract to the seller, and the seller can add a backup addendum.  When the seller signs the backup contract, it means that if Buyer 1 should cancel their contract for any reason, Buyer 2 is automatically under contract to buy the home.
Multiple backup offers are rare, but are possible as well.  The order that the seller signs these contracts would be the order in which they are entitled to buy the home.  Later offers would, of course, most often be at higher prices.  This would to entice the seller to sign a backup offer instead of putting the home back on the market if the first sale failed.

False Motives?
The problem with backup offers in a competitive buyer situation is that the backup offer actually increases the chances that Buyer 1 will close on the home.  Buyer 2 may feel better that they’re doing something constructive by signing a backup offer, but they’re really giving more incentive for Buyer 1 to expedite the sale.
Buyer 1 has plenty of potential reasons to back out of the contract.  They may find something they don’t like about the neighborhood.  An inspection could reveal structural issues.  A new home just down the street that Buyer 1 likes better might come on the market just a few days later.
When there are multiple backup offers in place, though, Buyer 1 takes on a protective stance.  They know that others want what they have, and they are more likely to forgive inspection issues and be more cooperative in seller negotiations.  If Buyer 2′s offer is at a higher price than Buyer 1′s, it creates even more of a sense to Buyer 1 that they’re getting a great deal.

If It Fails, Do You Really Want It?
There is always the possibility that Buyer 1 will not be able to finance the home, and the sale will revert to Buyer 2.  That’s fairly rare today with how zealously loan originators are scrutinizing loan pre-approvals, but it is a possibility.
Far more often, however, a sale fails because of an issue with the home.  Maybe the roof is falling apart.  The walls could be filled with mold.  The alley behind the home might be a favorite of the local drag-racing kids.  The next door neighbor might play his drum set every night at 3 a.m.
A buyer who is in a backup position automatically takes on a contract for the home when the first buyer opts out.  If a material defect on the property is the reason for Buyer 1 to cancel the sale, why would Buyer 2 want to be automatically under contract to buy this same property?

In General, Backup Offers Reduce Your Competitive Edge
Buyers submit backup offers in competitive situations.  Negotiations require buyers to gain any competitive advantage possible.  By submitting a backup offer, buyers often pigeonhole themselves into a subordinate position, and motivate their competition.
This doesn’t mean that buyers can’t do anything.  Have your Realtor let the listing agent know that you’re waiting in the wings with your buyer if anything goes wrong.  Stay on top of the transaction as it moves along, and if for any reason the sale fails, have your offer submitted immediately.
A buyer can still scoop up a failed sale in one day if their Realtor is on the ball and ready to submit the offer.  By being prepared, but not motivating the competition, home buyers put themselves in the strongest position possible.

Source: www.realtor.com