Use your heart and not your head may be a good advice but it is not the way to make a real estate decision. It may be a nice way to buy a new dress or sport coat, but it can be very costly to engage in real estate transactions based upon emotional attachment. Nonetheless, a lot of people buy the house they “fall in love with”. Just as bad, they will want to sell a house at a price they think it’s worth because of the time they have invested in it instead of what the market says it’s worth. We’re all busy so we work with professionals to assist us in a variety of areas such as medical, legal, taxes and yes, real estate.
Believe it or not some people think that a Realtor® doesn’t do anything other than stick a sign in the yard and wait for the phone to ring. Nothing could be further from the truth. A real estate professional offers you knowledge of the marketplace to which you wouldn’t otherwise have access. A Realtor knows the market place. The real estate market has changed dramatically over the last year. Overall North Texas has fared well, but we aren’t immune to financial instability. While Dallas hasn’t been as dramatically affected as many other regions, there are fundamental changes taking place in the marketplace today caused by macro-economic conditions that you need to know about. Be sure to ask yourself and your Realtor these important questions.
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How does the credit crisis and stimulus package affect my position as a potential Buyer or Seller?
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Do I even qualify for the $ 8000 tax credit?
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What should every potential Buyer and Seller be doing now to strengthen their respective position in a potential transaction?
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Is GREEN certified energy a good investment or should I redo my bathroom instead?
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Just what are “derivatives” anyway?
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What is more important to consider, the home/townhouse itself, or the land beneath it when making a real estate decision?
These are all critical questions that a competent real estate professional should be able to answer for you.
I’d like to share with you what I consider to be the 5 most important things you can do, or review, to better your position when entering into any real estate transaction.
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Ask yourself why are you buying or selling and what is your intention in doing so – discuss this thoroughly with your real estate professional.
It may seem like an easy question, but there is usually more here than you think if you’re honest, and to do the best possible job for you, your agent needs this information and it will strengthen your negotiating position regardless of which side of the transaction you are on.
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Review the Rule of 72. As you begin to look at mortgages and interest rates you’ll find the Rule of 72 to be very useful.
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Don’t overextend yourself. A good rule of thumb is never buy a primary residence that is more than 4 times your earned annual income, even if you qualify for more.
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Always, Always, Always have the property thoroughly inspected.
Remember, all that glitters, is not gold.
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Last, but perhaps most important, hire a real estate professional that you trust and preferably one with some knowledge of finance and economics. Even Donald Trump with all of his real estate knowledge and expertise continues to hire professional real estate brokers.
”I feel the same way about Interior Decorators as I do about Real Estate Brokers – they are worth every penny.” Donald J. Trump (Think Like a Billionaire: Everything you need to know about Success, Real Estate, and Life, 1994.)
Attend a free real estate seminar “The top 10 reasons to buy now!” at the
Carrollton Public Library
1700 Keller Springs in Carrollton
Wednesday, May 27th
7:00 to 8:30 pm
Presenting Sponsor - Advocates Realty
Attendance is free, but seating is limited, please RSVP 214-550-5111
Jay Narey is a licensed Realtor with Advocates Realty and has earned professional designations as both an Accredited Buyer Representative and as a Accredited Luxury Home Specialist. He currently sits on the Government Affairs Committee for the MetroTex Board of Realtors. Visit his website at www.jaynarey.com or email Jay at jaynarey@swbell.net.