There is a Difference

Ever wondered about the meaning of the term real estate "agent?" Many believe the term "agent" and "salesperson" are synonymous, but as the terms relate to real estate, their difference is quite important.

The dictionary defines "agent" as "a person empowered to act for another." A salesperson is defined as "a person employed to sell goods." Although real estate agents are actively involved in sales work, their responsibilities as an "agent" go much further.

Under the "law of agency," an individual may be employed or "empowered" to act on behalf of another. For example, homeowners may employ a real estate company as their "agent" to represent their interests in locating a buyer. Then the "agent" is obligated to faithfully represent the owners' interests by locating a purchaser at the highest possible price, and on favorable terms.

When the agent represents the sellers, only one obligation - honesty - is owed to the other parties to the transaction. In short, when representing the sellers, the agent acts on their behalf, while treating the buyers with complete integrity.

Does that mean buyers should be wary of agents who represent sellers? Not at all. They should, however, be informed about whom the agent is representing.

Can buyers also be represented by an agent? Of course, but any such arrangement should be formalized in writing, including an agreement regarding compensation.

Whether buying or selling a home, it is wise to know who is represented by whom. If in doubt, ask.

Bring It On Home

Buyers and sellers develop a natural sense of excitement as a transaction's closing date nears. While most aspects should run smoothly, it's wise to be prepared for unexpected delays. Anticipating potential problems before they develop could save untold time and stress.

One pitfall might be the title search. The title is simply legal proof of a property's ownership, but issues such as death, divorce, and liens can cloud the final result. Meet with an attorney to determine and resolve any problems.

Financing can also present snags. If the buyers can't qualify for a loan, the deal falls through. Buyers should begin their mortgage education well in advance of their home search, and sellers should ask a price in line with the home's appraised value. If the appraisal is much lower than the contract price, the lender will likely reject the loan application.

The best situation for buyers (and sellers) is to have a loan pre-approval in hand. It starts with the loan officer performing a review of the buyer's credit, income, and asset v. liability status. A letter of pre-approval should indicate exactly how much home a buyer can afford, and should put sellers more at ease with pre-qualified buyers.

There are myriad aspects to closing the deal, so go over each item thoroughly with your real estate representative and develop your plan of action!

Heads or Tails?

They say that no coin is so thin that it doesn't have two sides, and home prices are not so different. Many who invested like mad in real estate the last few years felt the giddiness of buying low and selling high. Investors are feeling the pinch now, but what about the regular folks who buy and sell their homes not for profit, but simply because they want security for themselves and their families?

Sellers want rising home values, but buyers need affordable housing. Unfortunately, these two concepts are often mutually exclusive. Sellers may not feel as positively about the markets right now, but as long as your house is your "home," you shouldn't be feeling as much pressure as someone who bought a property simply to "flip" it for profit.

If your income remains level, and home prices are falling, it actually makes you richer. How so? Because now you can buy more home for the money.

Ultimately, lower home prices will benefit buyers and the economy. Imagine what your children or grandchildren would be facing if home prices had continued their meteoric rise of a few years ago.

It's easy to see that affordable housing is more important than wild appreciation (which must correct itself eventually). Widespread homeownership results in economic growth, so try to understand and not to fear lower home prices.

Million Dollar Price Reduction!

New Price: $2,500,000
The Landings at Skidaway Island
6 bedrooms / 8.5 bathrooms

Stunning appointments adorn this magnificent six-bedroom, eight and one half bath brick home that epitomizes fine Southern Living. Set in a prestigious gated community, this home has ample living space where Brazilian cherrywood floors extend throughout.The master suite is the crowning jewel with his and her dressing rooms, a private porch, and a lavish marble bath with heated floors and a double shower. Superbly designed for entertaining, the prized residence boasts a beautiful solarium, an award-winning gourmet kitchen enhanced by a glass chandelier and butler's pantry, a pavillion with a wet bar, and a billiards room offering a full bath. A balcony-lined library, a living room featuring a fireplace and an antique mantel, and a grand dining room with a marble fireplace are among other fine interior areas.

Click to view full listing!

Sheltering You and Your Income

It's easy to be swayed by all the negativity swirling around in the real estate industry. However, home ownership offers benefits you just can't get from other forms of investment, regardless of market conditions. In particular, the US tax code makes buying and owning a home a great deal.

First, you can deduct from your income the interest paid on your mortgage. That applies to second homes, too. You may even be able to deduct your loan's insurance premiums. If you've taken out a home equity loan, that interest is also deductible, regardless of how you've used the money.

If you've sold or plan to sell your home, profits up to $250,000 (or $500,000 for married couples) are free from taxation. While some restrictions apply, you won't get that kind of bargain on the sale of stocks, bonds, or other investments.

Now to get back to that mortgage interest deduction: it's almost guaranteed that if you hold a home loan, the interest deduction will help you reach the threshold for claiming all sorts of other itemized deductions above and beyond the standard amount allowed.

So just simply owning a home puts you in the happy position of being able to claim myriad other deductions from your taxable income. Real estate agents are not tax advisers, but they recognize a good deal when they see one!

Looking Good in the Neighborhood

When you look your best, you attract attention. A recent survey of five hundred REALTORS® proves that it's no different when it comes to marketing your home.

82 percent of those polled reported that buyers unimpressed by a home's "curb appeal" won’t be interested in a closer look. Additionally, 90 percent of the agents explained that a sale depends greatly on first impressions walking through the front door.

That same number also reported that the appearance of a home's exterior is equally important as the interior features and condition. When buyers see your home from the street and the front walk, they feel that what they see is what they get.

When you're ready to list, work hard on your curb appeal and make sure the interior displays the same pride of ownership. Then have professional photographs accompany your listing on the Internet, as well as in brochures, newspaper ads, and other marketing tools.

These photos may be the buyers’ first "first impression" to look closer. The more pictures you offer, the better your chance for a quick sale. Listings with one photo sold for 91 percent of the listing price, while those with six or more pictures sold for 95 percent of the asking price. When you do the math, you’ll see that an attractive home plus attractive marketing is the formula for success!