Consumer Protection Tips For Home Buyers & Sellers

PROTECT YOURSELF

CONSUMER PROTECTION TIPS FOR HOME BUYERS AND SELLERS

HOME BUYERS Check your credit report for accuracy and completeness.Buyers with inaccurate information on their credit report may have a hard time obtaining financing, or be offered loans at higher-than-market interest rates. The Fair Credit Reporting Act gives consumers the right to a free credit report from each of the three nationwide credit reporting companies every 12 months. Visit https://www.annualcreditreport.com/ to request a report.· Use the Internet wisely. Educate yourself about mortgages and mortgage fraud. Hire the right real estate professional for the job.When you’re buying a home, would you know what to do if your financing fell through the day before closing, your home inspection found a termite infestation, or your future neighbors had just built a wall on your property? As a buyer, you want someone who knows the market and who has experience handling the particular needs of home buyers, whether it’s identifying homes and neighborhoods, negotiating for the best deal, or coordinating the 20+ steps between contract acceptance and closing. Some real estate professionals offer rebates or may work on a fee-for-service basis, in which buyers may be responsible for their own property searches, negotiating strategies, or other tasks. These different business models give consumers a degree of choice in deciding how they want to work with their real estate professional. Just make certain you know what services are provided and what you can expect from the business relationship. Remember that you’re not just buying a home; you’re investing in your future.

HOME SELLERS · Know your home’s value. Beware of companies offering to buy your home to save you the “hassle” of putting it on the market – these companies often profit at the seller’s expense. Ask several Realtors® in your area for a comparative market analysis, or CMA. These real estate professionals will analyze recent sales and market conditions to provide a realistic assessment of your home’s value, and can suggest strategies for the best sale. · Protect yourself and your home.Don’t allow random passersby into your home unescorted. A serious buyer will be working with a real estate professional or should be willing to contact your agent to schedule an appointment. A Realtor® can help evaluate purchase offers and advise you on counteroffers and contract acceptance. It is important to know how contingencies such as appraisal, financing and inspections will affect the transaction, and understand their implications for you as the seller. Remember, a high price offer is worthless if the buyer never makes it to the settlement table.· Hire the right real estate professional for the job.Relying on the experience of a real estate agent makes financial sense. Today, home sellers can choose from nearly 80,000 real estate brokerages and more than 1.2 million Realtors® with a number of different business models, including full service, fee-for-service, and discount brokerage. Full service brokerage is just that – agents handle all aspects of the transaction, including marketing the home, qualifying buyers, negotiating offers, and coordinating settlement. Discount brokers typically offer a reduced package of services at a lower cost to the seller. This may be a good choice for experienced sellers or those who do not need to sell immediately. The fee-for-service business model offers consumers a variety of services for specific fees. Major facets of the buying or selling transaction, such as competitive market analysis, counseling and negotiations, are separated. NAR encourages innovation and competition, and recommends that home sellers interview at least three Realtors® to evaluate their qualifications and fit.

Don’t make an agent’s commission the sole deciding factor – you wouldn’t put your life in the hands of a doctor because he or she had the lowest fee; why would you want to do that with your largest financial investment?