How Do You Know You've Picked the Right Real Estate Agent?

 Watch on your mobile device >>

All real estate agents are not created equal.  They may have access to the same systems, the same information and market data, similar industry tools used across the board and universal access to government agencies that house important data that may be relevant in helping you sell your home.  So what sets apart the successful ones from the bad apples?  It is how they use the things that are at their disposal – that is what makes all the difference. 

Now, unless you are completely well versed in the process of home selling and real estate, chances are you may not know all the ins and outs of these tools.  So how can you measure the success rate of potential agents you may or may not want to work with?  The answer lies in three important metrics that you can easily employ to help you make that decision.

Does The Agent Have a Proven Track
Record?

Anyone can tell you they are good.  They can even show you a few case studies that support their statement.  But the best way to tell whether the performance is up to par is to measure how they do and have done during the good times and the bad.  These days, in light of our challenged market of the past several years, it is the perfect time to assess the track record of agents you may be considering.  Do they have sales that average one every few months?  Is this metric standard for all their years as an agent or reflective of the more recent hard times? 

What Is The Agent’s Marketing Strategy?

In real estate, the marketing has traditionally not been as aggressive as other areas of investment.  Lately, however, there has been an increase in more aggressive techniques that more often than not lead to success for several reasons. Agents typically adopt passive marketing measures – industry standards – such as MLS listings, conducting open houses, using the Internet for localized promotion as well as word of mouth.  However, the newer brand of marketing is active marketing.  This entails a “reach out and grab prospects” approach and while it may seem pushy, the results are worth it.   The difference between an agent opting for both styles versus just the one, traditional method, can be as significant as landing you a better offer in quicker time with a bigger selling price.  The presence of an additional offer on the table raises the stakes, making all these things possible and far more probable than if there was just one offer on the table.

What Does The List of References Look Like?

Of course you will be provided a list of references while shopping for a new agent.  And of course the people on that list will have good things to say about the Realtor.  But consider this: what agent will give you a list of people that don’t have something nice to say?  A good way to approach what could be a gaping hole in this area is to ignore the list provided to you and instead, request a list with names of people the real estate agent is either currently working with or with whom he or she has recently closed a sale.  Then, ask the key questions to help guide you whether this is the right agent for you:  Are they timely?  Is the agent accessible? Do they deliver on the promises they make?  What were the results of each case?

~
At the end of the day, the goal is that you sell your property and sell it well. Selling it well can translate to a higher price, more efficiently managed procedures, smoother and streamlined process, and an overall quicker turn around time.  By following the suggestions in this article, you will be able to discern the best agent in your area to handle your specific needs.  Half the battle of selling your home is in choosing the right agent to help you achieve your goal.

Are Bi-Weekly Mortgage Payments Worth the Time and Effort?

Watch on your mobile device >>

In most cases, yes! It’s essentially a process by which you make extra payments on your mortgage. That way, you save interest costs and pay off the loan faster.

How Does It Work?

You make a payment to your lender every two weeks instead of once a month. This means that each payment is equal to half of the monthly amount due. The result – you’re paying the equivalent of 13 full payments rather than the usual 12.

It gets even better! The full amount of the extra payment is applied toward the principal. And because the principal balance is the amount on which interest is calculated, paying down principal results in a reduction in accrued interest!

Let’s look a traditional payment monthly schedule vs. a bi-weekly schedule so you can see exactly how it works.

Example 1: Traditional monthly payments

Let’s assume you have a loan balance of $250,000 with a 6 percent interest rate and a 30-year loan term. In this example, your monthly payments are $1,498.88. So, over the life of the loan, you’d pay a total interest of about $289,595.

Example 2: Bi-weekly payments

Using the same loan balance and terms described above, the difference would be the following:

• $749.44 paid every two weeks

• About $225,490 paid in total interest

• This results in a savings of more than $64,000 in interest!

• In addition, the loan is paid off in 24 rather than 30 years

Bi-monthly payments are still a good strategy if you’re an individual who doesn’t plan to keep your house for 24 or 30 years. Why? Because bi-weekly payments still reduce principle, even over a short period of time.

For example, in the first year, the principle is reduced by nearly $1,600. And, at the end of the fifth year, the principle amount has been reduced by about $9,000!

How Do I Arrange Bi-Weekly Payments?

The first task is to contact lenders to find out if they do offer a bi-weekly payment schedule.

If they offer one, ask what the participation requirements are. In typical situations, lenders require you to have payments automatically withdrawn from your bank account since they dislike processing checks every two weeks.

Often, it’s the case that a one-time fee is charged for this service. The fee can be minimal or be in the several-hundred-dollar range, depending on the lender.

So, after all these benefits, how can there possibly be disadvantages to bi-weekly mortgage payments?

Well, the first disadvantage relates to a situation I mentioned above - the lender’s fee is very expensive for the service provided. In such a case, the costs may outweigh or cut down your overall savings.

A second disadvantage occurs when paying bi-weekly is too hard on your budget. Upfront, you need to make sure that you have the money available for the increased payments.

The final potential disadvantage relates to the length of time you plan to stay in your home. That can affect your overall savings on interest.

I recommend that you weigh the pros and cons of bi-weekly mortgage payments by using one of the many online calculators. Just enter your numbers and the calculator will give you a comparison.

If you’d like the assistance of an expert on the subject, contact us immediately!