Buyers and Sellers Beware the Next Tax Credit Deadline.
Buyers and sellers beware the next tax credit deadline. If next summer yields the buying and selling frenzy many real estate professionals are hoping for, home buyers and sellers should plan ahead now. Waiting until the last minute to close for first time homebuyers wanting the $8,000 tax credit or move up buyers wanting the $6,500 tax credit is a big mistake. Banks have proven to me that they are having major trouble making closing dates. I have had buyers turn over completed files to lenders in record time only to have the file sit in some office for over two weeks before anyone put a set of eyes on the file.
The major draw back for buyers and sellers alike is what to do if the file is unexpectedly closing late. Buyers have leases they are working with and sellers are also faced with moving out early to turn over the property on time. In many of the situations my clients faced this year temporary lease backs and buyer leases were worked out. However this may not be an option for everyone, due to the risk involved. The best advise I can give for buyers is to shoot for a close 30 days before you have to give up your lease. Sellers should consult with the listing agent to keep tabs on the status of the loan to time up their move.
Krishna Perkins, ABR
Many home buyers do not know the difference between client and customer
Many home buyers do not know the difference between client and customer. Unfortunately first time home buyers leave money on the closing table because they stay a customer and have no idea what the advantages are for clients.To begin to understand the differences lets look at the simple definition.
A customer is simply a home buyer shopping without representation.
A client has a signed representation agreement with a real estate agent also shopping for a home.
I know, I know no one likes the initial idea of signing agreements. However, there are many more additional advantages to having an agreement as a customer rather than not having one as a customer.
Clients get: Obedience, Undivided loyalty, full disclosure, confidentiality, accounting and reasonable care/diligence
Customers only get: Honesty, accounting, reasonable skill and agency/material fact disclosure
The biggest term in both of these definitions is confidentiality. While you are shopping for a home any information you wouldn’t want the seller to know is at stake without representation. Confidentiality of even the smallest details of your life can cost you thousands, what kind of job do you have, do you have to move soon, where are you from, how long have you been in your job field, etc. These items sound small but a seasoned seller representative has a duty to report any of this information to the seller and help the seller determine if you can afford to pay just a little more or a lot more than you’re offering.
Now an experienced buyer representative will help insulate you from the seller. How? Well for starters a buyer rep will have access to the keys to any home you want to see and keep your sensitive information private.
The next biggest and final term I will discuss in this post is full disclosure. Many buyers are confused about this part, thinking that agents have to give up all information about a house. Agents are only required to give known material facts about the condition of a home. Disclosure on how long the house has been on the market, number of price reductions, comparative market analysis on similar homes for sale or sold in the area is not required.
These are only a few pieces of information buyers need to be aware of when considering buying a home. The best advice to buyers is to shop for a helpful agent first and sign a one day contract with your top candidates so you can discuss exactly what you want in a home. You need that contract just in case you cross paths with the agent on the other side of the transaction so they have to keep any information they learned about you confidential even to their current seller client.
If you have any questions or would like further information I’m always willing to help buyers understand.
