1. Talk with recent clients
Ask agents to provide a list of what they've listed and sold in the last year, with contact information, says Ron Phipps, president-elect of the Chicago-based National Association of Realtors. Before you start calling the names, ask the agent if anyone will be "particularly pleased or particularly disappointed," he says.
With past clients, "I'd like to know what the asking price was and then what the sales price was," says William Poorvu, professor emeritus at Harvard Business School and co-author of "The Real Estate Game: The Intelligent Guide to Decision-making and Investment."
And, if you're the seller, ask if these past properties are similar to yours in price, location and other salient features, Poorvu says. What you want is someone who specializes in exactly what you're selling.
Another good question for sellers is: How long has the home been on the market?
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2. Look up the licensing
States will have boards that license and discipline real estate agents in those states, says Phipps. Check with your state's regulatory body to find out if the person is licensed and if there have been any disciplinary actions or complaints.
Some states, including Virginia, Arizona and California, put the information into online databases that consumers can search. "But I think very few people do," says Robert Irwin, author of "Tips & Traps When Buying a Home."
3. Pick a winner
Peer-given awards count, says Phipps. One that really means something is the "Realtor of the Year" designation awarded by the state or local branch of the National Association of Realtors.
"These agents are the best as judged by their peers," he says. "That's a huge endorsement."
4. Select an agent with the right credentials
Just as doctors specialize, so do real estate agents. And even generalists will get additional training in some areas. So that alphabet soup after the name can be an indication that the person has taken additional classes in a certain specialty of real estate sales. Here's what some of the designations mean:
CRS (Certified Residential Specialist): Completed additional training in handling residential real estate.
ABR (Accredited Buyer's Representative): Completed additional education in representing buyers in a transaction.
SRES (Seniors Real Estate Specialist): Completed training aimed at helping buyers and sellers in the 50-plus age range.
If the agent calls himself a Realtor with a capital "R," that means he's a member of the National Association of Realtors. By hiring a Realtor, "the most important thing you get is an agent who formally pledges to support the code of ethics," says Phipps.
Five years ago, one-third of real estate licensees were Realtors, he says. "Now, it's half."
5. Research how long the agent has been in business
You can often find out how long the agent has been selling real estate from the state licensing authority. Or, you can just ask the agent.
"If they haven't been in business five years, they're learning on you and that's not good," says Irwin.
Ultimately, what you're looking for is someone who is actively engaged in a particular area and price range, says Phipps. You'll want to know what knowledge of those two factors they can demonstrate and "what kind of market presence they have," he says.
6. Look at their current listings
Check out an agent's listings online, says Brobeck. Two places to look are the agency's own site and Realtor.com, a website that compiles properties in the Multiple Listing Service into a searchable online database.
Most buyers start their search on the Internet, and you want an agent who uses that tool effectively. "A key thing is an attractive presentation on the Web," says Brobeck.
You also can look at how closely the agent's listings mirror the property you want to buy or sell. Are they in the same area? Is the price range similar? And does the agent have enough listings to indicate a healthy business but not so many that you'd just be a number?
7. Ask about other houses for sale nearby
A good agent should know about other available area properties "off the top of his head," says Irwin, who wrote "Tips & Traps When Buying a Home." Mention a house in your area that's sold recently or is for sale. If the agent knows the property and can give you a few details, that means he or she really knows your area, he says. Says Irwin: "You want someone like that who's on top of the market."
Saturday, February 15, 2014
Saturday, February 1, 2014
More Home Construction in 2014
Many economists predict that 2014 will see more investors retrenching and more buyers putting roofs over their own heads. That’s not the only big change ahead. Home prices are expected to stabilize this year, while homebuilding will be more aggressive.
“The housing market has staged a spectacular recovery over the past year,” economists Anil Puri and Mira Farka wrote in their 2014 economic forecast. “More recent data, however, point to a softening of these trends.”
Here are the top real-estate trends we’re likely to see in 2014:
More Inventory
You can expect to see more people putting their homes up for sale this year, as rising prices bring new equity to underwater homeowners.
“I’m hoping that since interest rates are still low, it’s a better opportunity not only to sell, but to rebuy,” he said.
Another factor: New home construction is expected to increase further this year, further boosting options for home shoppers.
New-home Sales to Rise
Nationwide, forecasters expect the number of housing starts to range from 1.19 million to 1.25 million, up from 975,500 in 2013.
Builders are compensating for years of light construction volume, said Robert Denk, an economist with the National Association of Home Builders. “There’s a huge construction deficit,” he said.
An increase in homebuilding means that new home sales should go up, too.
When construction levels fell, “buyers were forced into resale homes,” said housing consultant Mark Boud of Irvine, Calif. Many buyers prefer newer homes, which have the latest designs and are more energy-efficient.
“The reason (new home) sales will increase is we are supplying more product,” Boud said.
Mortgage Rates to Rise
Interest rates for 30-year, fixed mortgages likely will rise this year, averaging somewhere in the 4.9 percent to 5.3 percent range, forecasters say.
That’s still low historically but well above rates for the past 2 1/2 years.
The average rate for a 30-year fixed mortgage had been solidly less than 4 percent since late 2011. Last summer, it spiked to 4.5 percent.
The Federal Reserve’s decision last month to start reducing purchases of Treasury and mortgage-backed bonds likely will push up mortgage rates – but not wildly.
“Rates are not going to soar because we’re still in a pretty weak economic recovery,” Denk said. “When the dust settles, (rates) are still a bargain.”
Credit May be Easier
After years of tight lending standards, homeowners should have an easier time getting mortgages, said Svenja Gudell, director of economic research for housing website Zillow.
After last summer’s 1 percentage-point increase in mortgage rates, the refinancing business dried up for lenders.
“They want to fill that void with purchase money loans,” Gudell said. That may mean lenders may approve loans to borrowers with lower credit scores or higher debt.
“So we’ll see a lot of people who couldn’t get a mortgage in 2013 able to get a mortgage in 2014,” she said.
“The housing market has staged a spectacular recovery over the past year,” economists Anil Puri and Mira Farka wrote in their 2014 economic forecast. “More recent data, however, point to a softening of these trends.”
Here are the top real-estate trends we’re likely to see in 2014:
More Inventory
You can expect to see more people putting their homes up for sale this year, as rising prices bring new equity to underwater homeowners.
“I’m hoping that since interest rates are still low, it’s a better opportunity not only to sell, but to rebuy,” he said.
Another factor: New home construction is expected to increase further this year, further boosting options for home shoppers.
New-home Sales to Rise
Nationwide, forecasters expect the number of housing starts to range from 1.19 million to 1.25 million, up from 975,500 in 2013.
Builders are compensating for years of light construction volume, said Robert Denk, an economist with the National Association of Home Builders. “There’s a huge construction deficit,” he said.
An increase in homebuilding means that new home sales should go up, too.
When construction levels fell, “buyers were forced into resale homes,” said housing consultant Mark Boud of Irvine, Calif. Many buyers prefer newer homes, which have the latest designs and are more energy-efficient.
“The reason (new home) sales will increase is we are supplying more product,” Boud said.
Mortgage Rates to Rise
Interest rates for 30-year, fixed mortgages likely will rise this year, averaging somewhere in the 4.9 percent to 5.3 percent range, forecasters say.
That’s still low historically but well above rates for the past 2 1/2 years.
The average rate for a 30-year fixed mortgage had been solidly less than 4 percent since late 2011. Last summer, it spiked to 4.5 percent.
The Federal Reserve’s decision last month to start reducing purchases of Treasury and mortgage-backed bonds likely will push up mortgage rates – but not wildly.
“Rates are not going to soar because we’re still in a pretty weak economic recovery,” Denk said. “When the dust settles, (rates) are still a bargain.”
Credit May be Easier
After years of tight lending standards, homeowners should have an easier time getting mortgages, said Svenja Gudell, director of economic research for housing website Zillow.
After last summer’s 1 percentage-point increase in mortgage rates, the refinancing business dried up for lenders.
“They want to fill that void with purchase money loans,” Gudell said. That may mean lenders may approve loans to borrowers with lower credit scores or higher debt.
“So we’ll see a lot of people who couldn’t get a mortgage in 2013 able to get a mortgage in 2014,” she said.
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