Awesome Links for Home Sellers and Buyers

http://www.callsarahfirst.com/twin-cities-home-seller-faqs/

http://www.callsarahfirst.com/2015/11/30/top-10-reasons-to-stage-your-home-for-sale/

http://www.callsarahfirst.com/2015/11/29/pre-sale-repairs/

http://www.callsarahfirst.com/2016/05/16/getting-the-maximum-appraisal-value-for-your-home/

http://www.callsarahfirst.com/2016/03/22/best-moving-tips-and-resources/

http://www.callsarahfirst.com/2015/11/29/transferring-utilities/

http://www.callsarahfirst.com/2016/08/05/final-walk-through/

http://www.callsarahfirst.com/2017/01/02/true-lifestyle-cost-tlc/

http://www.callsarahfirst.com/2016/10/04/how-can-a-real-estate-agent-help-buyer-purchase-a-new-home/

Real Estate, Safety, and YOU!

Whether you are a home buyer, seller or real estate agent, this video is for you!

The practice of meeting new clients at their home or a home they are interested in buying the first meeting sounds so... well, normal these days but it's not really the best practice for buyers, sellers or real estate agents. Here's why:


Ready to buy or sell a house? Contact me and visit me at one of my offices! (Or maybe one of my favorite coffee shops.)

Real Estate Gimmicks

Good advertising is good for sales.  It's marketing 101 really.  But when it comes to real estate advertising, who is being sold?

Let's look at some programs (a.k.a. gimmicks) that are presented to home sellers.

GUARANTEED SALE in XX DAYS: a.k.a. Guaranteed price reduction that you must pre-approve them to do when you list and the reductions happen quickly - like every week or two and they are often large - like 10-20%.
So, if you really do take a hard look at the data real estate agents have and you are removed from the history you have with your house, you will know if it's possible for you home to sell in your timeframe and the most probable price and that information is more important than any guarantee.

GUARANTEED SALE or WE BUY IT: a.k.a. First off, the “guaranteed sale” will not be at the price you expect. The Realtor who markets this type of plan is backed by investors who will purchase your home at a wholesale discounted price. Meaning that you may get $.60 to $.70 on the dollar.  That puts a different spin on it, doesn’t it? I mean, isn’t the phrase “acceptable price” extremely ambiguous. Acceptable to whom? The truth is that the “acceptable price” will be determined by the real estate agent, and it will be a price that is WAY below market value. If you do not agree to the “acceptable price” then you do not qualify for the guaranteed program. Most sellers that have looked at the market data know the "we buy it" price is BELOW the market value so they don't agree to the program and and therefore they don’t ever buy homes. Many of the so called “guru” real estate trainers around the country who recommend this marketing method tell agents how to structure their guarantee so that no informed person would even want to take the “guarantee.”

“I HAVE A BUYER FOR YOUR HOME”  a.k.a. If you would just talk to me I would love to list your house and then if I market it right, I will have a buyer.

OPEN HOUSES EVERY [SUNDAY]: a.k.a. Buyer Bait. Listing Bait.  The agent is HOPING that the neighbors come by so they can recruit future listings. They are also hoping that potential buyers without agents stop by so they can pick up some new buyer leads.  If one likes the house (according to the latest survey, less that 10% do) and they want to buy it, that's a double bonus as they get paid on both sides of the deal!

Let's look at some offers (a.k.a. gimmicks) that are presented to home buyers.

LOVE YOUR HOME GUARANTEED: a.k.a. If you don't love it, we will sell it for you and if find you another home to buy through us. And while we may waive our sale side of the professional fee (commission), you will still need to pay the buyer commission and we will need to hold Open Houses (see above).

MY SERVICES ARE FREE TO THE BUYER: Well, almost, a lot of the time.  The buyer representation contract almost ALWAYS include an admin fee or retainer fee and there is a possibility the seller doesn't agree to pay the buyer's agent's commission (though in most cases they do).  83% of agents are independent contractors which means they are self-employed/own their own business.  How would they stay in business if their services were free?  Ask them to explain how they get paid.

If you’ve considered calling on a “Guarantee” like these, be aware. Do you want to work with a residential real estate firm who is selling on gimmicks instead of truth and value from the start?

So, are there any guarantees you SHOULD take?

This is probably the biggest transaction you will have in your life. Trust is a vital part of an agent's value. The guarantee that you should be looking for is honest advice - even when the truth is hard. And a guarantee that they will follow up as promised.
Agents promising the world (high sale prices, fast sales, hot deals, etc) without data and plan to support the promise most likely are on the "sign now, explain later plan." Meaning they will be asking for price reductions or back pedaling when things don't go as planned.
Take the time to let your agent educate you to make a good decision instead of looking for the best gimmick. Review the agent's marketing plan.  Find an agent that asks a lot of questions and really understands your situation and goals. You will thank yourself!
See another version of this article at: http://www.callsarahfirst.com/real-estate-gimmicks/

Other articles you may enjoy:
Home Seller FAQs
Why are all those home search sites free?
Feng Shui 101

Will You Save Money if You Go Straight to the Builder?

Can you save money if you skip the real estate buyer's agent and go straight to the builder?

The better question might be, why would you want to use a real estate agent when you can tour models yourself and go straight to the builder to build a new home?

A Realtor is a professional who is on your side in the transaction. No other person represents you -- not the builder, or architect, or the GC. The agent in the sales office ONLY represents the builder, not you. The agent in the sales office is often trained to tell buyer's agents that they will "take it from here" and work directly with the buyer while still paying the buyer's agent so that they have more opportunities to upsell the buyer without a buyer's agent looking over their shoulder.

A good Realtor should be able to provide you with comparable sales to make sure you are not overpaying. They can point out possible issues with resale of your planned home which you might not be aware of and help you determine if you are "getting what you pay for" when it comes to quality.

Not only can I help buyers tour models privately and meet with builders, I often accompany clients in making their selections to help them decide which options will actually add value to their home vs. which ones are likely not going to pay off on resale.

Some people think that if they don't use an agent, they can save the money the builder would pay an agent. Realtors are paid out of the builder's marketing budget, so having one involved doesn't cost you extra.  Plus, having two real estate agents make sure things get done (from paperwork to selections) instead of one (just their own) is often a benefit to the builder so they are happy to work with a buyer's agent.

Also, consider that the builder is always a licensed agent themselves or has a licensed agent representing them. In MN, when an agent is selling a house themselves, we have to disclose this. Agents are considered "wolves" and buyers "sheep" because of the knowledge gap.  As a sheep, would you want to approach a wolf alone?

When choosing an agent to represent you for a new construction build, be sure they have represented a buyer in building before AND they have the education in working with the new construction process.  This is the best way to be certain they are going to be valuable in the process.

Lastly, if you have a home to sell, an experienced agent will make sure you understand your options when it comes to coordinating the building, selling and the financing of it all.

Best of luck with your home build, whether you decide to go it alone or hire an experienced buyer's agent (like me!).

Interested in reading more about new construction?
Check out these articles:
Tips for Buying new Construction
Should I Choose a Custom Builder?
Should I Choose a Production Builder?
Questions to Ask When Interviewing Real Estate Agents
Search for a New Construction Home
What is Your Current Home Worth?

How do you find the best deal on a mortgage?

Do you know how to find the best "deal" on a mortgage?

It's starts by know the right questions to ask and your goals. Nobody wants to make mistakes that cost them money and a little knowledge and planning could save you big on your mortgage!

First, let's think about your homeownership plans and goals.

• What do you want your monthly payment to be?
• How long do you plan to live in the house?
• How much money do you have for a down payment?
• How much do you have to pay closing costs?
• Do you plan to remodel or gain equity quickly to refinance in under 5 years? 

Explaining your plan to a mortgage professional will allow them to best match you with a program that fits your needs.  Finding the right program is the primary way to get the best deal on a mortgage. Interest rates can be the number one expense in home loan! You may want to learn more about what affects your interest rate.

Other things you can ask to compare mortgages and save money are:

• If I increase my credit score, is there a better program for me?
• Is there a rate lock or rate guarantee program?
• Is there a way to remove mortgage insurance (if applied) without waiting a certain time period?
• If I put down more money is there a better option?

Other areas to save money by shopping around:

• Homeowners Insurance - This can be all over the board and depends on your credit score and if you are bundling other insurances.
• Inspection Fees - You want to know base charges, trip charges and add-on charges (like Radon or Lead Paint testing) upfront.
• Title Insurance - though this doesn't seem to vary by much by Title Co. in MN.

You can ask for discounts but many of them come with a price. Lenders have a bottom line and where you save in one area, you may sacrifice in another. For example, a "warehouse lender" may seem like their rates or fees are lower but you don't have the personal service because they deal in volume.
Saving $500 in fees may not be worth the lack of communication and delays or worse, not getting to closing at all.

Have more questions about the mortgage process? Call me and I will help you find some of the best lenders to help you navigate the process!

See other sources like Bankrate if you like to research.

Considerations When Buying a Home For Sale By Owner

Are you considering purchasing a For Sale By Owner House?

When you are looking for a home to buy, you want to consider every option. While most homes that are for sale are listed with real estate agents and put the the MLS (Multiple Listing Service) occasionally a homeowners try to sell their house themselves. Many of these homes you find simply by driving past and some are online.

While there are some companies that sell "FSBO packages" that give homeowners a lot of supplies for selling their home and even a listing on the MLS, it usually doesn't include much guidance or professional advice about the process or completing forms.

Because real estate transactions are the largest purchase of most people's lives, they can have pretty complicated contracts and have a lot of steps in the process, it's best to call a REALTOR® before contacting the owner directly.

A real estate agent can walk you through the steps in the process from evaluating the price and filling out the contracts to managing the transaction through closing.

Read more home search tips and information on everything from buying a foreclosure to the risk of calling the listing agent directly right here on this blog!

Do You Know WHY The Listing Agent Wants you To Call Them Directly About The Home They Are Selling?

Why would a listing agent want you to call them directly about purchasing a home they have listed for sale instead of using your own agent?

It's actually quite simple.

1) In most cases, if you buy it from the listing agent directly, without your own agent, they get double the commission (because they get the commission that would have been otherwise paid out to the buyer's agent).

2) If you don't buy that house they have listed they have the opportunity to sell you a different one.

3) Bragging rights to the seller that they found a buyer... even if you really found the house by driving past the sign - and any agent can put a sign in the yard.

Heck, all those things sound great to me as the listing agent!

So why does that matter to you as the buyer and how does that affect you?

Well, in Minnesota, we have  disclosure call AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS that explains how you can choose to be represented in a real estate transaction. Under Minnesota law this form must be presented at first substantive contact to a buyer or seller in any real estate transaction. 

This form explains four relationships stated below and has you sign to acknowledge that you have been given the options and understand that you are not represented until you choose an agency agreement and will simply be treated as a customer. It goes on to say that dual agency requires written consent.

1. Seller’s/Landlord’s Broker (Owes their client Fiduciary Duties)
2. Buyer’s/Tenant’s Broker (Owes their client Fiduciary Duties)
3. Dual Agency - Broker Representing both Seller/Landlord and Buyer/Tenant 
4. Facilitator 

So, let's think about how these relationships apply to calling the listing broker/agent directly. Because that agent is already representing the seller under #1, the Seller's Broker, that only leaves you withe #3 and #4 as options.

#3 is Dual Agency.
This role limits the level of representation the broker/agent can provide, and prohibits them from acting exclusively for either party. 
In a dual agency, confidential information about price, terms and motivation for pursuing a transaction will be kept confidential unless one party instructs the broker or salesperson in writing to disclose specific information about him or her. Other information will be shared. Dual agents may not advocate for one party within the limitations described above, dual agents owe to both Seller/Landlord and Buyer/Tenant the fiduciary duties described below.(2) Dual agents must disclose to Buyers material facts as defined in MN Statute 82.68, Subd. 3, of which the broker is aware that could adversely and significantly affect the Buyer’s use or enjoyment of the property. (MN Statute 82.68, Subd. 3 does not apply to rental/lease transactions.)

SO... BOTH PARTIES LOSE THE BENEFIT OF HAVING AN AGENT NEGOTIATE ON THEIR BEHALF.  Often, informed sellers will not agree to this since they have often hired the agent to get the best terms and price for their home.

If the seller doesn't agree to the dual agency, you as the buyer are left with only one option for help, having the Listing Broker/Agent be a facilitator on your behalf... and that means they are only helping you with paperwork and it is still their job to negotiate against you, the buyer.

The disclosure is very clear: "THE FACILITATOR BROKER OR SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY DUTIES LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE DUTIES ARE INCLUDED IN A  WRITTEN FACILITATOR SERVICES AGREEMENT. " View the form to see this statement

So, let's circle back to having your own agent representing you; choosing a Buyer’s/Tenant’s Broker agreement.

In this case, you are represented by an agent whose job it is to work on YOUR BEHALF in the transaction.  They have fiduciary duties TO YOU: Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care, Accounting. 

Sounds good but expensive right?  Wrong!  Buyer's agent are most commonly paid by the seller! WHAT?  WHY would the seller pay for someone to negotiate against them? In the listing agreement, a portion of the listing fee is designated to pay a buyer's agent (cooperating broker).  This is done to encourage the entire state of licensed agents to bring buyers to listing that are not their own increasing the exposure for the seller and allowing the seller to decline dual agency and still get a buyer.

It may still sound a bit complicated but the disclosure was designed to protect the consumer and let them know their rights.  If you would like to discuss it further, please call me!

Need more answers? Read these articles:
Simplified Real Estate Glossary for Home Buyers and Sellers
Learn the Lingo: Real Estate Vocabulary 101
twin-cities-houses.com - Virtual Home Tours
Home Selling Help

Real estate gimmicks

Now You Can Visualize Your New Home in Your Design Style!

Are you struggling to see the potential in the homes you are seeing for sale?

Are you worried that it will cost too much money to make one your own?

Do you feel like you don't know where to start?

PurpleWall can help!

How you say? PurpleWall will take basic information about the rooms you want to customize and connect you to talented designers virtually!  You can set your budget and leave with a shopping list!

SEE MORE!  VIDEO ON THE NEXT PAGE. :-)

Simplified Real Estate Glossary for Home Buyers and Sellers

NAR Real Estate Glossary

Here are terms you are likely going to hear in your real estate transaction in Minnesota.

In order to understand things throughout the real estate process, these are important terms and phrases to review.  Here is another lpost featuring real estate lingo.

In alphabetical order:

24-hour notice: Allowed by law, tenants must be informed of showing 24 hours before you arrive. This may also be requested where sellers have home businesses.

Addendum: An addition to; a document.

Agent: The licensed real estate salesperson or broker who represents buyers or sellers.

Amended value: The actual sale price after the seller successfully markets and sells his or her home through the broker of his or her choice. The sale is turned over to a third-party relocation company for closing, and the guaranteed offer is amended or changed.

Appointments: Those times or time periods an agent meets with clients.

Appraisal: A document of opinion of property value at a specific point in time.

“As-is”: A contract or offer clause stating that the seller will not repair or correct any problems with the property. Also used in listings and marketing materials.

Assumable mortgage: One in which the buyer agrees to fulfill the obligations of the existing loan agreement that the seller made with the lender. When assuming a mortgage, a buyer becomes personally liable for the payment of principal and interest. The original mortgagor should receive a written release from the liability when the buyer assumes the original mortgage.

Back on market (BOM): When a property or listing is placed back on the market after being removed from the market recently.

Back-up agent: A licensed agent who works with clients when their agent is unavailable.

Back-up offer: When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property.

Bill of sale: Transfers title to personal property in a transaction.

Board of REALTORS® (local): An association of REALTORS® in a specific geographic area.

Broker: A state licensed individual who acts as the agent for the seller or buyer and often holds the licenses of non-broker agents.

Broker’s tour: A preset time and day when real estate sales agents can view listings by multiple brokerages in the market.

Buyer: The purchaser of a property.

Buyer agency: A real estate broker retained by the buyer who has a fiduciary duty to the buyer.

Buyer agent: The agent who shows the buyer property, negotiates the contract or offer for the buyer, and works with the buyer to close the transaction.

Carrying costs: Cost incurred to maintain a property (taxes, interest, insurance, utilities, and so on).

Closing: The end of a transaction process where the deed is delivered, documents are signed, and funds are dispersed.

CLUE: CLUE (Comprehensive Loss Underwriting Exchange) is the insurance industry’s national database that assigns individuals a risk score. CLUE also has an electronic file of a properties insurance history. These files are accessible by insurance companies nationally. These files could impact the ability to sell property as they might contain information that a prospective buyer might find objectionable, and in some cases not even insurable.

Commission: The compensation paid to the listing brokerage by the seller for selling the property. A buyer agency agreement may require the buyer to pay a commission to his or her agent.

Commission split: The percentage split of commission compensation between the real estate sales brokerage and the real estate sales agent or broker.

Competitive market analysis (CMA): A study done by real estate sales agents and brokers using active, pending, and sold comparable properties to estimate a listing price for a property.The analysis used to provide market information to the seller and assist the real estate broker in securing the listing.

Condominium association: An association of all owners in a condominium. (Condo Docs usually include: Condominium budget: A financial forecast and report of a condominium association’s expenses and savings. Condominium by-laws: Rules passed by the condominium association used in administration of the condominium property. Condominium declarations: A document that legally establishes a condominium. Condominium right of first refusal: A person or an association that has the first opportunity to purchase condominium real estate when it becomes available or the right to meet any other offer. Condominium rules and regulation: Rules of a condominium association by which owners agree to abide.)

Contingency: A provision in a contract requiring certain acts to be completed before the contract is binding.

Continue to show: When a property is under contract with contingencies, but the seller requests that the property continue to be shown to prospective buyers until contingencies are released.

Contract for deed: A sales contract in which the buyer takes possession of the property but the seller holds title until the loan is paid. Also known as an installment sale contract.

Cooperating commission: A commission offered to the buyer’s agent brokerage for bringing a buyer to the selling brokerage’s listing.

Counteroffer: The response to an offer or a bid by the seller or buyer after the original offer or bid.

Curb appeal: The visual impact a property projects from the street.

Days on market: The number of days a property has been on the market.

Destination services: Services provided to the transferee at the new location. They can include familiarization tours, temporary housing, school searches, and so on.

Direct home-selling costs (DHSC): Carrying costs, loss on sale, repairs and improvements, commission, closing costs, principal, interest, taxes and insurance, interest on equity loans, and utilities.

Disclosures: Federal, state, county, and local requirements of disclosure that the seller provides and the buyer acknowledges.

DOM: Days on market.

Down payment: The amount of cash put toward a purchase by the borrower.

Drive-by: When a buyer or seller agent or broker drives by a property listing or potential listing.

Dual agent: A state-licensed individual who represents the seller and the buyer in a single transaction.

Earnest money deposit: The money given to the seller at the time the offer is made as a sign of the buyer’s good faith.

E-mail: Electronic or Internet-based communication.

Escrow account for real estate taxes and insurance: An account into which borrowers pay monthly prorations for real estate taxes and property insurance.

Exclusions: Fixtures or personal property that are excluded from the contract or offer to purchase.

Expired (listing): A property listing that has expired per the terms of the listing agreement.

Feedback: The real estate sales agent and/or his or her client’s reaction to a listing or property. Requested by the listing agent.

Fee simple: A form of property ownership where the owner has the right to use and dispose of property at will.

FHA: Federal Housing Administration. FHA Loan Guarantee: A guarantee by the FHA that a percentage of a loan will be underwritten by a mortgage company or banker.

Fixture: Personal property that has become part of the property through permanent attachment.

Flat fee: A predetermined amount of compensation received or paid for a specific service in a real estate transaction.

Floor duty or time: That a time, usually assigned, when a real estate sales agent answers telephones, e-mails, or walk-in requests for information on property.

For sale by owner (FSBO): A property that is for sale by the owner of the property.

Gift letter: A letter to a lender stating that a gift of cash has been made to the buyer(s) and that the person gifting the cash to the buyer is not expecting the gift to be repaid. The exact wording of the gift letter should be requested of the lender.

Gross sale price: The sale price before any concessions.

Homeowner’s insurance: Coverage that includes personal liability and theft insurance in addition to hazard insurance.

HUD: U.S. Department of Housing and Urban Development.

Inclusions: Fixtures or personal property that are included in a contract or offer to purchase.

Independent contractor: A real estate sales agent who conducts real estate business through a broker. This agent does not receive salary or benefits from the broker. Most real estate agents are independent contractors.

Inputting: The process of entering new listings or changes to a current listing in the multiple listing services.

List date: Actual date the property was listed with the current broker.

List price: The price of a property through a listing agreement.

Listing: Brokers written agreement to represent a seller and their property. Agents refer to their inventory of agreements with sellers as listings.

Listing agent: The real estate sales agent that is representing the sellers and their property, through a listing agreement.

Listing agreement: A document that establishes the real estate agent’s agreement with the sellers to represent their property in the market.

Listing appointment: The time when a real estate sales agent meets with potential clients selling a property to secure a listing agreement.

Listing exclusion: A clause included in the listing agreement when the seller (transferee) lists his or her property with a broker.

Loan: An amount of money that is lent to a borrower who agrees to repay the amount plus interest. Loan application: A document that buyers who are requesting a loan fill out and submit to their lender.

Loan closing costs: The costs a lender charges to close a borrower’s loan. These costs vary from lender to lender and from market to market.

Loan commitment: A written document telling the borrowers that the mortgage company has agreed to lend them a specific amount of money at a specific interest rate for a specific period of time. The loan commitment may also contain conditions upon which the loan commitment is based.

Loan package: The group of mortgage documents that the borrower’s lender sends to the closing or escrow.

Loan processor: An administrative individual who is assigned to check, verify, and assemble all of the documents and the buyer’s funds and the borrower’s loan for closing.

Loan underwriter: One who underwrites a loan for another. Some lenders have investors underwrite a buyer’s loan.

Lockbox: A tool that allows secure storage of property keys on the premises for agent use. A combo uses a rotating dial to gain access with a combination; a Supra® (electronic lockbox or ELB) features a keypad.

Managing broker: A person licensed by the state as a broker who is also the broker of record for a real estate sales office. This person manages the daily operations of a real estate sales office.

Market familiarization trip: A visit by the transferee to the new location to view housing market options and location highlights.

Marketing period: The period of time during which a property is being marketed by the listing broker based on the listing agreement.

Mortgage banker: One wholends the bank’s funds to borrowers and brings lenders and borrowers together.

Mortgage broker:A business that or an individual who unites lenders and borrowers and processes mortgage applications.

Mortgage loan servicing company:A company that collects monthly mortgage payments from borrowers.

Multiple listing service (MLS): A service that compiles available properties for sale by member brokers.

Multiple Offers: More than one buyer present offers on one property where the offers are negotiated at the same time.

NATIONAL ASSOCIATION OF REALTORS® (NAR): A national association comprised of real estate professionals.

Net sales price: Gross sales price, less concessions, to the buyers.

Niche: A special area or interest.

Off market: A property listing that has been removed from the sale inventory in a market. A property can be temporarily or permanently off market.

Offer to purchase: When a buyer proposes certain terms and presents these terms to the seller.

Open house (public): When a listing that is on market is available to the public for viewings and showings. The agent holding the open house often represents the seller.  

Parcel identification number (PIN): A taxing authority’s tracking number for a property.

Payoff letter: A written document from a seller’s mortgage company stating the amount of money needed to pay the loan in full.

Pending: A real estate contract that has been accepted on a property but the transaction has not closed.

Personal assistant: A real estate sales agent administrative assistant.

Planned unit development (PUD): Mixed-use development that sets aside areas for residential use, commercial use, and public areas such as schools, parks, and so on.

Preapproval: A higher level of buyer/borrower prequalification required by a mortgage lender. Some preapprovals have conditions the borrower must meet.

Prepaid interest: Funds paid by the borrower at closing based on the number of days left in the month of closing.

Prepayment penalty: A fine imposed on the borrower by the lender when the loan is paid off before it comes due.

Prequalification: The mortgage company tells a buyer in advance of the formal mortgage application, how much money the borrower can afford to borrow. Some pre-qualifications have conditions that the borrower must meet. Many sellers request to only allow showing by prequalified buyers.

Preview appointment: When a buyer’s agent views a property alone to see if it meets his or her buyer’s needs.

Pricing: When the potential seller’s agent goes to the potential listing property to view it for marketing and pricing purposes.

Professional designation: Additional non-licensing real estate education completed by a real estate professional.

R & I: Estimated and actual repair and improvement costs.

Real estate agent: An individual who is licensed by the state and who acts on behalf of his or her client, the buyer or seller. The real estate agent who does not have a broker’s license must work for a licensed broker.

Real estate contract: A binding agreement between buyer and seller. It consists of an offer and an acceptance as well as consideration (i.e., money).

REALTOR®: A registered trademark of the NATIONAL ASSOCIATION OF REALTORS that can be used only by its members.

Release deed: A written document stating that a seller or buyer has satisfied his or her obligation on a debt. This document is usually recorded.

Relist: Property that was listed with another broker but relisted with a current broker.

Retainer fee: A predetermined amount of compensation paid to an agent or broker to receive representation or service in a real estate transaction.

Rider: A separate document that is attached to a document in some way. This is done so that an entire document does not need to be rewritten.

Salaried agent: A real estate sales agent or broker who receives all or part of his or her compensation in real estate sales in the form of a salary.

Sale price: The price paid for a listing or property.

Sales meetings: An informational meeting conducted by the managing broker held in the real estate sales office.

Sales volume: The total amount of all sales prices for all transactions completed by a real estate agent, broker, or real estate sales office.

Secondary market: An institutional investment market that purchases mortgages from mortgage lenders.

Seller (owner): The owner of a property who has signed a listing agreement or a potential listing agreement.

Showing: When a listing is shown to prospective buyers or the buyer’s agent (preview).

Sign rider: An additional sign placed on a brokerage yard sign; it may include the agent’s name, “open Sunday,” “contract pending,” “sold,” the new price, and so on.

Special assessment: A special and additional charge to a unit in a condominium or cooperative. Also a special real estate tax for improvements that benefit a property.

State Association of REALTORS®: An association of Realtors® in a specific state.

Supra®: An electronic lockbox (ELB) that holds keys to a property. The user must have a Supra keypad to use the lockbox.

Temporarily off market (TOM): A listed property that is taken off the market due to illness, travel, repairs, and so on.

Temporary housing: Housing a transferee occupies until permanent housing is selected or becomes available.

Third-party company: A relocation company hired by an employee’s employer to coordinate the employee’s move to a new location.

Trailing spouse: The spouse or partner of the employee being moved to a new location by an employer.

Transaction: The real estate process from offer to closing or escrow.

Transaction fee: A fixed amount in addition to commission charged to sellers.

Transaction management fee (TMF): A fee charged by listing brokers to the seller as part of the listing agreement.

Transaction sides: The two sides of a transaction, sellers and buyers. The term used to record the number of transactions in which a real estate sales agent or broker was involved during a specific period.

Under contract: A property that has an accepted real estate contract between seller and buyer.

VA: U.S. Department of Veterans Affairs.

VA Loan Guarantee: A guarantee on a mortgage amount backed by the U.S. Department of Veterans Affairs.

Vacate date: The date on which the seller (transferee) vacates the property (generally the date when responsibility for property expense by the transferee ends) and the third-party company assumes ownership for the property through a buyout.

Virtual assistant: A real estate sales agent administrative assistant that works remotely.

Virtual tour: An Internet web/cd-rom-based video presentation of a property.

Voice mail (VM): A telephone message system where voice messages can be retrieved directly or from a remote location.

VOWs (Virtual Office Web sites): are an Internet based real estate brokerage business model that works with real estate consumers in same way as a brick and mortar real estate brokerage.

Walk-through: A showing before closing or escrow that permits the buyers one final tour of the property they are purchasing.

______________________________________
Other Terms:
Material Fact

What causes closing delays in home sales?

The Most Common Delays Toward Closing on a Home

About 60 percent of REALTORS® reporting on their last contract indicated that the contract had some type of issue:

• financing issues,
• home inspection issues,
• appraisal issues, 
• buying/selling distressed property, 
• tilting and deed issues, 
• or with contingencies stated in the contract.

With all the talk about the difficulty in obtaining a mortgage, only 12 percent of contracts that were reported to have settled or terminated had financing issues. One possible explanation noted may be that potential homebuyers are deciding to wait for now, so these buyers were not captured in the data.

Need help with buying or selling a home? Call me!

Sources: http://realtormag.realtor.org/daily-news/2015/06/09/most-common-delays-toward-closing
http://economistsoutlook.blogs.realtor.org/2015/06/08/64-percent-of-contracts-are-settled-on-time/

Links you may enjoy:
Housing Market Updates  |  Getting the Best Price for your Home  |  Getting pre-approved  |  Homes for Sale  |  What is Your Home Worth  |  Why Call Sarah First

Come find me!

If you are planning to BUY or SELL a home this SUMMER, READ THIS

If you are planning a real estate move in 2015, you have got to know your timeline.  That means knowing when you need to complete each step in the buying/selling process.

If you want to move this summer, It's time you meet with a real estate agent!  Even if you have your home all picked out to BUY and your financing plan is sold TODAY, you are not likely going to close until JUNE!!!

If you are a home SELLER and your home is not on the market yet, you will likely not be closing until July or August!!!

So if you are planning to move this summer, CALL NOW. 651-964-0289

A “Perfect” House

There is not now, nor will there ever be, a “perfect” house.   

It might be the "perfect" location, the "perfect" curb appeal, the "perfect" layout and the "perfect" yard... but all homes have flaws.

It is what it is. Especially in this Minnesota climate of drastic weather, homes have flaws and develop flaws.  Your new construction home will probably start "showing it's age" before you even move in.  Homes need maintenance. Some maintenance is cosmetic, some may be structural.  It needs to be evaluated as part of the cost of homeownership.

If you are buying a home, it is very important to exercise your right to a home inspection. See the included "For Your Protection, Get a Home Inspection" and take it seriously.  Hire a qualified inspector, show up for the inspection, ask questions, review the report thoroughly and ask more questions if necessary.  Every report will have a laundry list of flaws and/or problems.  It's up to you to make the final decision how they affect the value of the home.

With all that imperfection looming, can you still love the house you buy? Can you still find the "perfect" home for you? Absolutely!  Just be sure you are searching with your heart and evaluating with your head.

Ready to start your home search?  Visit www.CallSarahFirst.com
Or download the free home search app:  app.callsarahfirst.com CODE: KW1Z62GIH

Want to read more about home inspections, C.L.U.E. reports, what to get tested and even where to find out if someone died in a home?  I have tons of great info right here in my blogs! I can even help you through the MAJOR considerations in choosing your next home!

(Remember, I don't endorse any of these services nor do I get paid to promote them or am I responsible for the info they provide and of course I can't give legal advice...blah, blah, blah. I'm a MN licensed real estate sales person.)