SPECIAL SECTION REAL ESTATE
Importance of a Local
Real Estate Agent
What First-Time
Homebuyers Should
Know
Last year was a great year for new homebuyers. According
to the National Association of Realtors, about 35 percent of
the homebuying market was made up of first-time buyers. Yet,
each year is not created equally in the mortgage industry and
real estate market. Changes happen frequently and it is often
hard to keep up. If you’re looking to break into real estate for
the first time, here are some insights into how to navigate the
market.
SAVING.
Step number one for a first-time homebuyer should
always be saving. Take a look at your current finances. It’s
recommended that your mortgage payment not exceed 30
percent of your gross monthly income. See where you can cut
back spending to put away a little extra out of your paycheck
every month for your new home. Not only can this cash go
toward a down payment, but most likely you’ll need furniture,
appliances, and decorations to furnish your new home.
Don’t just calculate the amount of money needed for a down
payment. Keep in mind the unforeseen expenses such as home
repairs, agent fees and closing costs. You can never save too
much!
1. Mortgage.
You wouldn’t undergo surgery without a surgeon, or do a root
canal without a dentist, so why would you buy or sell a house
without a real estate agent? Agents have in-depth knowledge of
local communities, an insider’s view of the real estate market,
and early access into listings that go on the market. By having
a real estate agent on your team, you can take full advantage of
these perks when trying to buy or sell a home!
Moving into a new community? A real estate agent is
familiar with the lay of the land—from what the neighborhood
is like, to the local hotspots. He/she will be able to guide
you in the decision that best fits your ideal location and wish
list. Making a move into a new neighborhood or town with
kids makes a real estate agent even more necessary. Agents
can provide an inside look into school districts, sports teams
and available extra-curricular activities that could be a game-
changer for you and your family.
Having an agent as an insider into all things local is just one
benefit. With access to other real estate professionals, such
as mortgage lenders, home inspectors, attorneys and title
companies, agents are valuable in streamlining the process of
making a transaction. They also have access to the multiple
listing service (MLS) to provide you with information
on available homes. Access to the MLS is restricted to
licensed agents and brokers, providing them with a wealth of
knowledge that they can then pass along to you. This includes
information that sellers don’t necessarily list on public sites,
such as square footage, seller disclosures and HOA regulations.
Armed with facts from the MLS, including comparable
listings in the area, real estate agents can negotiate on
your behalf. They are able to develop an offer that reflects
market value, while still staying within certain budgetary
guidelines. Once these offers are reviewed, agents can make
recommendations from inspections on repair costs and how to
appropriately counter an offer.
If you are in the market to buy or sell, start by doing some
research on a real estate agency that is right for you. Have new
neighbors? Ask who their agents were. They obviously did a
good job of selling your neighborhood to buyers. If referrals
aren’t available, look for a local office in your neighborhood or
in the neighborhood where you’re interested in moving. The
agency can offer guidance and support throughout the entirety
of your home buying or selling process.
Applying for a mortgage can be an intimidating process,
but if you prepare accordingly, you’ll be happy with the
outcome. According to LendingTree.com, mortgage
lenders are allowing higher debt levels for borrowers
with lower down payments (as little as 3 percent on
a conventional mortgage loan). You may not need
the typical 20 percent down that was required of
homebuyers a few decades ago. If your debt-to-income
Continued on next page >
MARS AREA
❘
SUMMER 2018
27