Kimberly Olson

Your Source for Georgetown Real Estate!

Buying.

The Process: Buying real estate is a complex matter and can be especially confusing for the first-time home buyer. Save yourself a lot of frustration and unnecessary stress by working with a Realtor. Because most buyers' agents are compensated by the seller, the buyer usually pays nothing to be represented. The seller has someone looking out for their best interests, shouldn't you?

Figure out Your Finances: That means determining how much house you can afford (money for your down payment and how much you can afford to pay on a monthly basis). I recommend doing this before looking at any homes for two reasons:

1. It saves you time by keeping you from looking at homes that are above your means.

2. It saves you from disappointment in the event you find a home you love, only to find out that it out of your price range.

You’ll need to contact a mortgage broker/banker to find out the size of mortgage you qualify for and get to get pre-qualified. If you are unsure who to contact, I can offer a few suggestions. When calculating the costs of home ownership, remember to plan for homeowner's insurance, property taxes, private mortgage insurance (if required), utilities, repairs, and maintenance.

Identify your needs: Make a list of thing you can’t live without, things you’d really like to have, and things that you absolutely want to avoid. By communicating your needs to your agent, you can find that perfect property faster.

Selling.

Use a Realtor: Some homeowners think that selling their own home will save money and give them an advantage over the Realtor-using majority. Before starting down this complicated path, here are a few reasons why using a Realtor is important:

You'll be drastically limiting your exposure to potential buyers, which means it can take between 10 and 15 times longer to sell your home. Houses that take a long time to sell usually sell for less.
Most buyers find negotiating with sellers extremely awkward, and therefore avoid FSBO situations.
Most buyers use a Realtor in their home search, and most buyers' agents won't typically work with FSBOs unless they are compensated. This means you will have to offer a selling commission to attract buyer's agents, which will cut into your expected "savings."
Lack of negotiating experience can result in a lower selling price, or worse, a bungled contract and possible lawsuits.
If you plan to use a lawyer to help you negotiate, their fees could be considerably higher than a Realtor's commission.
You only pay a commission to your Realtor if they successfully sell your home at a price you are happy with.

Price it right: Statistics show that properties that are initially priced too high eventually sell for less than properties that were correctly priced in the first place. Also, over-priced houses can take months or even years to sell, while properly priced houses usually sell in a matter of weeks or even days. Request a CMA from your agent.