Buyer’s agency has been around since the 1990’s but few buyers realize just how important it is to them when looking for and buying a home. Wikipedia defines Buyer’s agency as “the practice of real estate brokers and their agents representing a buyer in a real estate transaction rather than, by default, representing the seller either directly or as a sub-agent.” But what are the advantages to a buyer hiring an agent to represent them in buying a home and what are the differences with a traditional real estate brokerage. Below are listed some of the differences and the advantages to buyer’s agency representation.
- Most buyers do not know that when working with a traditional brokerage the agent working with them represents the seller.
- An agent representing the seller cannot reveal the reason for selling unless the seller specifically authorized release of this information.
- Agents representing the seller cannot offer any concessions the seller may be willing to provide.
- Conversations between the seller and agent are confidential. Any information that may be detrimental to the seller which gives you the buyer an advantage will not be conveyed.
As you can see the buyer is not being represented in these types of transactions and in today’s market the buyer wants to take advantage of all means to acquire a home which is why we are seeing many more buyers opting to hire a buyer’s agent. Now some of the advantages of signing a buyer’s agency agreement;
- A buyer’s agent can prepare a comparative market analysis using historical data to determine the true market value of the home at that time.
- The buyer’s agent can reveal any information about the seller and why they are selling that the agent can ascertain. This could include the reason for selling, concessions or any other information that will help you make an offer.
- You as the buyer are being represented and the focus is to meet your needs.
Buyer’s agency puts you as the buyer in the driver’s seat and if negotiations are at a standstill wouldn’t you want to be the one who is being represented. As you can see buyer’s agency can be a tool that buyers can use to find the best property at the best price. Finding the right home, at the right price and making a decision that may be the most important financial decision in your life is too important to not be the focus of your agent’s attention.
There is a lot to be said for condo living. It might be hard to get used to for first-time condo buyers, especially those coming from houses with large backyards, but there are definitely more pros than cons.
One of many good things about condos is they can be found in practically any style or location that suits you. There is one out there to suit all your needs.
Some people considering moving from single-family homes into condos wonder if they will get used to living in a condo complex, so close to other people . Perhaps they want to shed the burden of maintenance responsibilities, or just move closer to the downtown action. But they hesitate, fearing a reduction in space and privacy.
However, construction techniques used in condos built or converted in recent decades have put an end to the problem of noise. Excellent sound insulation material has been incorporated so normal activity cannot be heard outside your condo.
Many condos also are surrounded by greenery and beautiful landscaping, much bigger than the average backyard, and available for residents to enjoy. Plus, many environmentally conscious condo developers are including green roofs and decks in their buildings to cut down on energy usage. These also are provided as places for residents to relax. Residents can sometimes even plant their own gardens. If that is not an option, residents who like raising flowers and plants can generally row them on their balconies.
The amount of amenities available in many buildings is what makes condo living so attractive to many people, and you don’t have to spend a million dollars to get these luxury condos. Most are quite reasonably priced. Swimming pools and fitness centers are among the most popular amenities, along with entertainment rooms and fitness centers. Having a doorman is also nice too, and very common in big cities. Some condo developments have retail space on the main floor, so it is hard to beat having a grocery store in your building, or even a nice restaurant or dry cleaners.
Most condos have the latest updates, including state-of-the-art kitchen appliances and bathroom fixtures. Finding one in walk-in condition is possible anywhere.
Most condo developments are pet-friendly too, although there are often limits on the number and size of pets. But so you don’t have to leave your dog or cat behind when you move. Some even have dog runs, so you won’t have to go far to exercise your pets either.
Additionally, garage parking is usually available, and condos are usually centrally located, within easy reach of public transportation and main streets.
All things considered, condo living is hard to beat. Put your worries away and enjoy.
If you are a Realtor® who took a step back from the business due to the economic climate in recent years, now might be a good time to consider returning to real estate because home sales are starting to creep back up while interest rates remain low.
According to National Association of Realtors® data, existing home sales rose nationwide in August, following a correction in July. According to the latest information, existing-home sales—completed transactions involving single-family homes, townhomes, condominiums and co-ops—increased 7.6 percent to a seasonally adjusted annual rate of 4.13 million in August, up from an upwardly revised 3.84 million in July.
According to Freddie Mac, the national average interest rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.43 percent in August from 4.56 percent in July; the rate was 5.19 percent in August 2009. Interest rates haven’t been this low since 1963.
Nationally, sales remain 19 percent below the 5.1 million-unit pace in August 2009, but at least they are showing improvement over recent months. Sales improved across most regions of the country over the same period last year. Plus, median home prices are generally up too.
Seeing that the numbers are up across the country is another incentive for returning to real estate, no matter where you live. For instance, existing-home sales in the West jumped 13.8 percent to an annual pace of 990,000 in August, and in the Northeast they rose 7.9 percent to an annual level of 680,000. The median price in the West was $214,700, which is 2.5 percent below a year ago, but in the Northeast, the $260,300 median price in was up 7.6 percent from a year ago.
Existing-home sales in the Midwest increased 5.0 percent in August to a pace of 840,000. The median price in the Midwest was $149,600, up 0.4 percent from August 2009. In the South, existing-home sales rose 5.2 percent to an annual level of 1.62 million in August but are 13.4 percent below August 2009. The median price in the South was $155,000, down 1.5 percent from a year ago.
Total housing inventory at the end of August slipped 0.6 percent to 3.98 million existing homes available for sale, which represents an 11.6-month supply at the current sales pace, down from a 12.5-month supply in July. Less supply is expected to lead to higher prices, which is good news for people selling condos and other homes.
Existing condominium and co-op sales increased 8.5 percent to a seasonally adjusted annual rate of 510,000 in August from 470,000 in July, but are 17.1 percent below the 615,000-unit pace in August 2009. The median existing condo price was $174,000 in August, which is 2.8 percent below a year ago.
While NAR economists predict the recovery will be slow, returning to real estate now would be good, because buyers are gaining confidence, and starting to take advantage of the low interest rates and deals available with foreclosed properties or short sales.
There are thousands of homeowners discovering the benefits of environmentally conscious construction and green condos. Building experts and local developers predict that, as the cost of energy rises, consumer demand for so-called “green buildings” will grow. Also, as new building technologies come into wider use, the overhead cost of developing green buildings will drop and become the industry standard. Because green building results in energy cost-saving, healthier surroundings and more durable construction, they’re the future of condo construction. But there are two stumbling blocks. For green condos to catch on, developers have to gain experience working with the new energy-efficient, cleaner technologies to break the cost barrier. Second, realtors and developers have to educate consumers on what they are getting when they buy green.
Most consumers want what is considered today as a high-performance home. In the context of green condos it means a home that is safe, healthy and durable using resources efficiently. Green condos are actually greener than the greenest single family homes. With their high residential densities, they take up less space and preserve open land. In addition, urban condos are closer to metro stations, bus stops and bike trails which discourage people from relying on cars to go everywhere. Additionally, multi-family buildings are inherently green because fewer resources per unit are used to construct and to operate.
The technology today has exploded to cover almost every aspect of construction, materials, landscaping and energy renewal. Home and condo builders today boast many green features, including healthier paint and carpeting, recycling of construction waste, lots of natural light, high efficiency appliances and systems, water conserving fixtures, use of renewable materials, minimal water use landscaping and “green roofs” that help moderate temperature while reducing and filtering water runoff. Architects, developers and builders are all looking at ways to reduce carbon emissions and waste with the long term goal of creating buildings and technologies that produce more energy than they consume. Builders are aiming to offer condo buyers green buildings in the same price range as what they would expect to pay for an old fashioned, non-green condo in the area. It is a bold step for the building trades but they are up to the task to produce a high quality product that is cost effective and the market will ultimately embrace green condos.
Today some buyers are questioning investing in green condos. Green condos are not only fuel-efficient and environmentally friendly but save a lot of money. Who knew that being green could be so economically rewarding? So what’s the question!
If you are looking for a low-maintenance lifestyle, maybe in a popular downtown location or near the beach there is no better place to look than Miami Condos. Living in a condo in Miami can offer many benefits that you will not find in a home in the suburbs. They can offer more plentiful amenities from beach access, pools, golf courses, lawn maintenance and much more. All of these things offer a different lifestyle that many find appealing but there are a few things you might want to consider.
- Condos usually have an association that has guidelines, some may be casual but others can be strictly enforced. Get a copy of the rules and guidelines and make sure they will fit in with your lifestyle. Being at odds with the association and possibly your neighbors can make home a much less appealing place to live.
- Many Miami condos come with a variety of benefits but also a cost. Most associations have fees that cover many of the amenities which convinced you to entertain the idea of condo living in the first place. Some associations charge a small maintenance fee to cover the basics but depending on the extravagance of what are offered in your complex they can run much higher. Associations are anxious to provide you with their list of fees, what they cover, and what is expected of you as an owner. One last thing to consider regarding fees is to find out if the association is planning on any improvements or upgrades that can raise costs.
- Before you jump at that Miami condo find out about the community you are buying into. Does it fit the lifestyle you want? What is the financial status of the condo association? How many units are vacant? How many units are rented? If possible, talk to some of the owners and find out if they are happy living there, how well the complex is being run, or if they have had past problems and how those problems were resolved. You are buying into an entire community and it is important that you know all you can before making a decision.
There are many Miami condos in all types of locales from downtown Miami to Coconut Grove to Key Biscayne offering something no matter your taste or budget. No matter if you are retiring to south Florida to sit on the beach or find a vacation property there can be no more exciting location than Miami.
Working at OwnACondo.com, people often tell us why they decided to buy a condo or house at this time, and here is just such a homebuyer’s story.
Joan had moved around a bit after college, going where the jobs took here, to Boston and elsewhere. Now that she is back in the Chicago area, she decided that she had enough of apartment living. She heard a lot of gloom and doom from people who said this was not a good time to buy, but she had realized that now really is a good time. After all, she figured, as hard to believe at it is, we have 1963 mortgage rates. Imagine, getting a loan for the same interest that it would have cost almost 50 years ago. That is a hard deal to pass up. Of course the prices of homes have multiplied since then, but so have wages and everything else. But you can still borrow money at the same rate as when John F. Kennedy was president.
Besides the price of the loan, a homebuyer’s story also has to consider house affordability. In this case, Joan was looking at both condos and houses, and she found the ideal single-family house in a southwest suburb. Because she has a large dog, a Dalmatian, she had wanted to buy a house but was afraid initially that she would be limited to buying a condo due to the price. However, due to the low interest rates and the seller’s interest in coming to a deal, she was able to get a nice, two-story house near a park for what she considered a steal. So deals are out there, but sometimes you have to be patient. Joan actually had been looking for several months, and one deal actually fell through, but she took her time and did not get discouraged. All the naysayers were surprised and happy for her when she finally landed her dream house, even in this economy.
Of course, housing affordability varies between cities, so whether in Chicago or Minneapolis, or New York or Miami or L.A., a homebuyer’s story is going to be different. In Joan’s case, she bought a three-bedroom house for a little more than half of what her sister bought a one-bedroom condo for in suburban New York City a few years ago, but prices have gone down in New York too, and there are deals to be found now in every city. And they are not just on dilapidated, foreclosed properties. Joan’s house was in walk-in condition, and she couldn’t wipe the smile off her face as she turned that key in the door of her new home.
Radon is an indoor air pollutant which is a colorless, odorless radio-active gas that comes from naturally occurring uranium in soil. Radon is mostly found in soil that has been unturned for quite some time. This gas is important to know about because it is the leading cause of cancer in non-smokers and the second leading cause of lung cancer overall.
All sellers and buyers need to sign the radon form as a protection for themselves. If radon is known to be a hazard in the home, then this needs to be disclosed on the addendum. The buyer needs to confirm that they have received information on the radon levels and that they understand and agree to the terms. This disclosure is not to be taken lightly as it is a very serious matter. If radon is found in the home, then the seller is responsible to send out a mitigator to assist in reducing the levels so that it is safe for the homeowners/tenants to live in the premises.
Radon can enter through a home because of temperature differences between the outside air and the home. When air is vented from buildings, radon and other soil gases are drawn in from the surrounding soil through pockets between the soil and the house.
The Illinois Emergency Management Agency (IMEA) highly recommends all homebuyers have an indoor radon test performed prior to taking occupancy. If elevated radon levels are found in the home then the Illinois Emergency Management Agency strongly recommends the problem be mitigated. Elevated radon concentrations can be reduced by a professional licensed radon mitigator. The US Environmental Protection Agency recommends that indoor radon levels be below 4.0 picocuries (unit of measure) per liter of air.
If you need to obtain a kit, they are available at your county health department, home improvement store or local extension office. You can also call the Illinois Emergency Management Agency for a list of labs that sell the radon kits. IEMA also has a list of professionals who can come out and test for all homeowners.
Agents and clients need to make sure that this disclosure is signed and that the situation at hand is taken care of. It is important for clients and agents to understand this disclosure and take necessary measures to protect the clients. Regardless of whether or not the seller knows of any elevated levels of radon, the seller/owner needs to provide the buyer/tenant with information about radon. The radon pamphlet can be found online.
When you are getting ready to buy condos or co-ops, particularly in a place like New York City where co-ops are so common, it is smart to consult a condo specialist Realtor® because these experts can alert you to the differences between the two, and all the pros and cons.
While Realtors® should be consulted to get the details, there are a few general points to keep in mind when thinking of buying a condo or co-op. First, while traditional condos are more common in Chicago, Miami and other cities outside New York, a majority of the multi-unit developments in the borough of Manhattan are co-ops, so there are a lot to choose from.
Also, when trying to decide if you have the down payment needed to finance your condo, or co-op, remember that purchasing a co-op often requires putting down at least 25 percent of the cost, and often as much as 50 percent or even the whole amount. Also, you must go through an interview with the co-op board of directors, who run the complex, which can accept or deny the application for ownership. This is because by definition, co-op buyers are buying a share of the whole building, rather than one unit in the case of a condo.
Many tax breaks are available to co-op owners that are not offered to condo owners. Once again, you should consult a professional to determine the details. And of course, make sure you have a healthy credit score, because that will be taken into consideration when taking out a loan in any case.
Whether you end up buying condos or co-ops, you will have to take into consideration the monthly maintenance fees, which they both have. The fees are used to cover the cost of general maintenance, groundskeeping, and general repairs in common areas of the property.
It would be advisable too, whether you are buying condos or co-ops, to ask for financial statements for the complex, to see whether there is enough money on hand for major projects such as roof replacement. Also, because all the expenses are jointly shared, all the property owners share liability also. Although it rarely happens, when an owner defaults, the other owners have to share the responsibility of covering those expenses.
Selling condos is usually easier than with co-ops, due to the co-op board having the right to interview and scrutinize prospective buyers.
Because co-ops have an untraditional ownership system, it may be harder to find financing. The board also may have rules for down payments, which you'll probably find less flexible than some mortgage lenders.
These are just a few of the things to look out for whether you are buying condos or co-ops, just to give you an idea of what to expect.
Whether you are a purchaser or a renter, if you are interested in a residential real property that was built before 1978 you will need to complete a lead based paint disclosure. If you are a seller, your real estate agent will provide you with one to fill out so that you can provide it to the buyer/renter. Properties built before 1978 may be exposed to lead from lead-based paint.
Buyers have up to 10 days to check for lead in the residential dwelling. They can order a paint inspection which will tell if the home has lead based paint and also where it is located. A risk assessment will tell you if there are any lead hazards in your home. It also tells you what you need to do in order to address any of the hazards.
Lead an get into people’s bodies by swallowing or breathing in lead dust, or by eating paint chips containing lead. Lead poisoning is especially dangerous to young children and/ or pregnant women. If the pregnant woman has a high level of lead in her system prior to pregnancy, this could expose the fetus to lead through the placenta during fetal development. Lead poisoning can cause permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems and impaired memory in children. In adults, it can cause fertility problems, high blood pressure, digestive problems, muscle and joint pain, nerve disorders and memory and concentration problems.
If it is known that there are lead based paint hazards, then this must be disclosed by law on the lead based paint disclosure. As a seller, it is your responsibility to not only complete the lead based paint disclosure and provide it to the buyer/renter but to also supply the purchaser/renter with a lead based paint pamphlet which covers lead based paint in more detail.
If your residential dwelling was built after 1978 you are not required to fill out a lead based paint disclosure. The reason for this is because the paint that is now used does not contain lead. As a seller you are required, however, to provide the buyer/tenant with the lead based paint pamphlet to inform them.
Lead based paint is a serious matter which is why the federal government banned it in homes and apartments throughout the entire country. It is important to take special precautions when dealing with lead based paint.
Purchasing a home always involves reading through the contract and signing on the dotted lines. Most people that purchase a home, surprisingly do not read through the whole contract. They just seem to trust the fine print and the person guiding them through it. Most contracts are pretty standard and most people have a general idea what it contained. When reading through a contract, it is a good idea to know not only what the contingencies are, but also what they mean.
In every contract, there should be an attorney review. Typically the period is 3-5 days on a standard contract. This period is intended to give the buyer an opportunity to secure an attorney and have the attorney look over the contract. The attorney has the right to accept the contract as is or write in some modifications to the contract. The contract is still considered an offer at this point so if they modifications are not accepted then the offer becomes null and void. It is always a good idea to have an attorney review the contract before moving forward on a large purchase such as a home. This review period is put in place to protect the buyer and also to allow the buyer to rescind on the offer if need be.
Another contingency that can be found on a contract is the financing contingency. The amount of days the buyer has to secure a loan can vary per contract. The buyer has the responsibility to try to not only get pre-approved but also obtain a loan commitment letter as well. This loan commitment letter locks in a rate for a guaranteed period of time and also proves the buyer can qualify for the purchase of the home. If the buyer is unable to obtain financing for the home than the contract becomes null and void and all earnest money (if any) is returned. This contingency is put in place to protect the buyer and the seller.
The inspection contingency is not found on all contracts but it is a good thing to have on a contract. Inspections can make or break a deal. If the inspection does not go well then the buyer and seller have a few options. They can come to an agreement to either fix the problems or take more money off the offer so that they buyer can fix the items on their own or If the buyer does not want to fix the issues or the problems are too serious, than again the buyer has a right to rescind the offer.
There are a few other optional contingencies on a contract, such as a house to sell contingency. This is put in place if a buyer has to sell their home before the purchase of the new home. If someone else is interested in the property and they put an offer on the place without the house to sell contingency, then the buyer with the contingency typically has 72 hours to purchase the home.
