"I want to buy a home. . . . how do I find a real estate agent?"

The question should be "how do I select an agent?". . . not "how do I find an agent?"  The fact of the matter is that you simply need to whisper the words "I want to buy a home" . . .and you will have agents climbing out of the woodwork saying they can help.  If you have never purchased a home (or didn't care for the agent you used before) I recommend that you ask friends or co-workers who have recently purchased a home, if they were satisfied with their home buying experience ask for their agent's contact information.  This is a good starting point but don't use an agent solely based on that referral. . . .you still need to do your homework.   You need to be sure the agent has the experience, resources, and knowledge to provide you the service that you expect and also, you need to evaluate that you will be able to get along with them.  I would never recommend that you hire an agent based on personality alone, but it will help if you get along with them.  Here are some questions you can ask to help in the evaluation.  You don't have to use them all. . .pick a few that you think are most important.

1. Are you a full time agent?  Real estate agents need to have current information about the market, financing considerations, changes in the law etc.   You can read my previous blog about this topic if you wonder how I really feel.
2. How long have you been in the real estate business?  I know when I first started in real estate, I hated that question.  I was taught to answer "oh it feels like I have been in it my whole life"  simply to avoid the real answer.  Surprisingly, that often worked. . . . but there really is no substitute for experience.
3. Are you a Realtor?  Many people refer to real estate brokers and salespeople as "Realtors" but only those who belong to the National Association of Realtors have the right to be called "Realtors".  This is important because member Realtors must observe a strict code of ethics.
4. Do you work for a large or small real estate company?  While there are definitely good agents at small real estate companies, there is no comparison with the, resources, and information that agents with larger companies have as additional support.
5. How will you communicate with me?  If you want to hear from your agent via email and text messages, and they don't know what that means. . .find someone else.
6. When are you available to show me homes?  Your schedule is important.  If you are only available to look and homes on Saturday mornings. . .then you need an agent who is available then too.
7. What multiple listing services are you a member of in the area?  In the Atlanta area there are 2 different services available and an agent needs to know which one is best in the different areas.
8. Are you willing to provide me with references?  If they say no. . .run.  If they say yes, ask for contact information for 2 or 3 of their "recent" clients. . .and call them!
9. Do you operate as a "team" or as an "individual"?  I personally like to work as an individual.  There have been times that I have had an assistant or Buyer's Agent work for me, but mostly I feel that if a client has asked me to be their agent. . .they want to work with me. . .not someone else.
10. Are you familiar with the price range, type of property, and locations of the home I want to buy? See #2 above about the importance of experience.

 You might also be wondering what happens if you make a mistake and find out that the agent you selected is not compatible with you or really doesn't have the expertise and resources that you want. . . . .

. . . . find someone else! 

Buying a home requires major decisions and financial commitments so you want to be sure you are getting excellent advise and that you are working with someone who treats you the way you deserve.

Let me know your thoughts!

David Arnold
REMAX Greater Atlanta
David@HomerunAtlanta.com
678-784-4354

"I can't afford to buy a home"

If someone is renting and makes the statement "I can't afford to buy a home right now", they may want to consider this. . ."they are buying a home right now. . .the only problem is. . .they're buying it for someone else."  That is exactly what is happening when someone rents for a long period of time.  This doesn't mean that the correct decision for everyone is to buy and that no one should rent, there are many factors to consider.  Job and financial stability, a persons ability to deal with home repairs and how long someone intends to stay in the area are just a few.

There are a lot of opinions on the subject of renting vs owning a home. Many sites have calculators that will determine in dollars and cents what is best for your situation.  It is fun to see the outcome, but I don't think it is as simple as a mathematical calculation for deciding what is right for everyone.  The financial side is just one part of the equation.

Home ownership should not be taken lightly.  It should be part of an overall financial plan that is developed over time.  The joy of home ownership can quickly turn to distress if a person does not have a solid base in their finances and understand the responsibilities that come with home ownership.  So. . .my recommendation to all first time buyers. . . move slowly (but steadily) with a plan to purchase, but don't get too anxious. . .the time will come, and you will be much better off and happier if you do it "when the time is right" not just because someone told you that everyone needs to buy a home.

David Arnold
REMAX Greater Atlanta
Your Home Team Advantage. . . .

I would never buy a home that. . . . .

You can fill in the blank with any feature or situation that you can think of, and I have had clients that have taken both sides of the argument.

For example:

I would never buy a home on a basement

I would never buy a home on a slab
I would never buy a home on a crawl space
I would never buy a home on a busy road

I would never buy a home in the back of a subdivision

I would never buy a home in a neighborhood with an HOA

I would never buy a home in a neighborhood without an HOA

Get the picture?  These are not the comments from one client (who has multiple personalities)  These are the specific desires of different home buyers.  You could get into county, school districts, exteriors, paint colors, styles, lot size, grass type, trees and many more and still have folks on the opposite side of the comments.  As a real estate agent, you will never hear me say, "Never buy a home that. . . ."  But you will hear me explain to my clients how their requirements will impact the purchase price (positively or negatively) as well as the potential resale value in the future.  If someone believes that the best home to buy. . . is next to a highway, in a flood zone, and under power lines, then I will help them find that home. . . .but I will be certain that they understand those decisions will impact the saleability in the future and the impact on the price they should be willing to pay now.  All features and situations surrounding a home impact the value.  Remember the old saying about the the 3 things that determine value in real estate. . .

1. Location. . . . 2. Location. . . . 3. Location   

That is true for the overall "values" for each area. However, every feature, size, quality, style etc has the final impact on the "fine tuned" value within the location, location, location.

Kids Crooked House

So, if you are a person who wants to buy a strange home, with a strange floor plan, in a strange area, painted a strange color. . .go ahead. . .but be educated on the "value" that results from your choices.

David Arnold
www.HomerunAtlanta.com
Your home team advantage. . .

"It's a buyer's market. . .I can't sell my home now"

I frequently hear this statement from folks who are deciding not to sell their home.  They go on to explain that they would really like to sell. . .or they really need to sell. . .but they can't, because they don't want to "lose" money selling their home.  Yes, home sales are down as recently reported by the National Association of Realtors  but homes are still selling.  Home values are down in many areas. . .but homes are still selling. 

Consider the following :
1. Some folks are not selling because they don't want to "lose" money.
2. Some folks are not selling because they can't "lose" money.

My point is that nobody wants to lose money. . .but the real question is . . . are they really losing money?  No argument that there is probably a difference between the price someone can sell their home for in today's market as compared to 4-5 years ago. . .but is that really a loss?    

Does every person who invests in gold, diamonds, stocks, or bonds sell their investment at the absolute peak price? 

Of course not. . .some sell as true "loses" but others sell at prices that are still a profit . . . but less than the "best" price during their ownership.  Remember a home is not only an "investment" it is an investment that you can live in. . .try that with a municipal bond.  Let's look at a specific scenario of a couple who wanted to sell their home but did not want to "take a loss".  They purchased their cute 3 bedroom 2 bath ranch style home in 1998 for $135,000.  (I sold it to them by the way) Since that time, they have had 3 children and added an 80 lb brown lab. . . . they really NEED to sell their home so they can move up to a home that fits their new life style.  In 2005 they refinanced their mortgage to reduce the interest rate. . . and the mortgage company appraised their home for $185,000. (Sales prices and appraised values can be very different. . .but that is a different blog topic)  They called me last week when they found out that baby number four was on the way. . . .THEY NEED TO SELL.  

As aways, I spent a significant amount of time looking at the sales numbers and completing a detailed market analysis for their home.  Unfortunately, I had to deliver the news to them, that the "best" price we could expect in today's market is approximately $155,000.  I'll bet you can guess what their response was. . . . (I knew you were smart)  After reviewing the details of comparable home sales and my overall analysis. . .in unison they stated . . . "Oh no, we can't sell, because we can't afford to lose money."  Huh? . . . .  They paid $135,000 and can now sell for $155,000.  Even if they (and maybe you) want to consider this situation a LOSS.  Consider the following. . . the home that they are interested in purchasing is currently on the market for $300,000. . .and guess what. . .that home sold for $365,000 in 2005.  OK. . .get the picture?  If you deduce that the sale of their current home results in a "loss" of $30,000. . .(from the appraised value in 2005) then the purchase of the new home should be considered a "profit" of $65,000 right?   A net "profit" of $35,000 from selling and buying?

Regardless how you want to look at the numbers, it is a great time to "move-up" in properties if you need to. . . or just want to. . . .mortgage rates are incredibility low. . .and there are tremendous deals out there.