Golden Opportunities

Life has really changed just since the 90's. Seinfeld’s in re-runs. The tech stock boom is over. Everyone has a cell phone. And the real estate market has changed too. If you’re selling a house now, in the 21st century, you’ll want to update your technique. Here to bring our home sales “back to the future” is Rachel Torchia from Gateway Title Agency.

Question: Real estate has really changed since the 1990s. If we were buying or selling a home back then, what might have we expected?

Answer: In the 90s, 99% of real estate agents worked on 7 percent commission. Their marketing plan included signs, print ads, and information on where and when weekend open houses were occurring. You could either choose to work with a realtor, or decide to sell by owner without any help or support.
Also, when homes were sold, it really was a case of Caveat Emptor-Buyer Beware. Homes were sold "as is." There were very few inspections at this time.
Sellers only considered offers from buyers who could put down 20 percent (loan approval took about 3 weeks). Those with less than 20 percent down had longer loan approvals, and usually applied for FHA or VA financing.
Then, real estate agents also picked the title company and attended the closings.

Question: The picture in real estate today is different. How?

Answer: If your ready to sell a home, there are now more choices in getting your house on the market:

1. A full-service real estate agent, again at about 7 percent.
2. A reduced-commission agent with reduced services, at 3-5 percent. (Ask all agents if they charge an extra administration fee: $125-$250.)
3. Or For Sale by Owner. However, now you can call a title agency that specializes in For Sale by Owner for support, at 0 percent commission.

Question: What are the best ways to market your home today?

Answer:

1. A great sign.
2. Attractive flyers attached to the sign.
3. Open House advertising, which is very successful for those selling by owner.
4. But the most important marketing tool today is internet exposure. Over 80 percent of buyers now start their house hunting on the internet. Realtor.com is the most popular website.

Queion: Is it still "buyer beware" today?

Answer: Buyers today are different-they have much more control. Now it's more like "seller beware."
One difference is that sellers and agents now insist on a pre-approval letter before a buyer looks at a house.
It is not unusual for a buyer to get 100 percent financing and also ask the seller to "give back" a portion to cover the buyer's closing costs.
Buyers pay for home inspections, and many times they want extensive repairs and improvements to be made by the seller or they kill the deal-even when the contract says "as is."

Question: Any other changes?

Answer: It is now up to the buyer and the seller to chose the title agency for closing. It is illegal for real estate agents or lenders to steer the closing to their title agency.
The buyer and seller make separate appointments with the escrow officer for signing documents. Real estate agents and lenders seldom are present.

Questin: How can a buyer or seller learn the ropes?

Answer: We hold free workshops, to which you are all invited. We also offer a free closing kit which will help you become a smart seller.

It's a whole new real estate world. Protect yourself by getting educated. Gateway Title holds free workshops and offers a free closing kit. Call the number that's next for more information. My thanks to Rachel Torchia.