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Verdad Ventures, Real Estate Services for Century 21, Beal

Buying

As a buyer, it usually costs nothing to hire a REALTOR to help you find and purchase a home--your REALTOR will likely get a portion of the commission that the seller pays to his Agent. When choosing an REALTOR, get referrals from friends, relatives, and co-workers, and then interview as many agents as possible. Pick a REALTOR that works in the neighborhoods you're interested in. Listen to your agent, but make your own decision.

Selling

Some homeowners think that selling their own home will save money and give them an advantage over an Agent. Before you start down this complicated path, here are a few reasons why using a REALTOR is important:

1) You will be drastically limiting your exposure to potential buyers, which means it can take between 10 and 15 times longer to sell your home. Houses that take a long time to sell usually sell for less because buyers believe there must be something wrong with them.

2) Most buyers find negotiating with sellers extremely awkward, and therefore avoid For Sale By Owner situations.

3) Most buyers use a REALTOR in their home search, and most buyers' agents will typically not work with FSBOs because they will not be paid. This means you will have to offer a selling commission to attract buyer's agents, which will cut into your expected "savings."

4) Lack of negotiating experience can result in a lower selling price, or worse, a bungled contract and possible lawsuits. It is probably unwise to pit your negotiating skills against those of experienced professionals.

5) If you plan to use a lawyer to help you negotiate, your lawyer's fees could be considerably higher than a Realtor's commission. Unlike Realtors, lawyers do not get paid for proactively representing your best interests or mediating delicate situations.

6) You only pay a commission to your Realtor if they successfully sell your home at a price you are happy with.

Financials

That means determining how much money you can raise for your down payment and how much you can afford to pay on a monthly basis. Go to a lender to find out the size of mortgage you qualify for and get pre-approved. Better yet, use a mortgage broker to find you the best mortgage rate possible. When calculating the costs of home ownership, remember to plan for homeowner's insurance, property taxes, private mortgage insurance (if required), utilities, repairs, and maintenance.