While for some lucky residential or commercial property hunters, a real estate search may bear fruit in one day, for others comparison-shopping may stretch for weeks or even months. To find real estate that best suits their needs, purchasing power, and interest, prospective tenants or buyers must be informed and equipped with a well-structured search plan. By following a series of simple steps, real estate seekers can expect a smooth and stress-free experience.
First, consumers must decide whether they prefer to solicit the services of a real estate agent or search for real estate on their own. Individuals may conduct their own research and market comparisons as well as select their own inspectors and closing agents. Those who choose to proceed solo in their search are limited to homes that are For Sale By Owner (FSBO), which comprise a small chunk of the real estate sales market. Generally, 80% of the properties are “listed” or available for sale only through an agent, while the remaining 20% may be viewed without an agent. Consumers who are scouting for properties without the assistance of a realtor may find a “For Sale By Owner” who is willing to negotiate on the price. Another advantage of a non-agent search is that the individual maintains autonomy vis-à-vis the pace of the real estate search process. By contrast, shoppers who work with an agent have access to a greater number and much wider range of available properties. Buyers may obtain information and guidance from realtors at no cost, as the seller is almost always responsible for paying the agent’s commission. This explains why most consumers opt for an agent’s real estate sale or rental services. Other benefits of teaming up with a realtor include 1) access to a professionally-conducted comparative market analysis showing how a particular property’s price compares with that of the current market, 2) suggestions and choices in closing agents and house inspectors, 3) a follow-up on all minute tasks associated with the closing, and 4) experience in negotiation.
In selecting an agent, prospective buyers and tenants should focus on the following criteria:
- An agent with an understanding of their needs;
- Trustworthiness;
- Knowledge of the local real estate market and client’s target area;
- Familiarity with the client’s desired price range;
- A professional designation such as Certified Residential Specialist (CRS) or Graduate of the Realtors Institute (GRI); and
- Positive references from previous buyers;
- An agent that offers buyer representation;
- Agent that is well-versed and experienced in negotiating contracts and evaluating properties; and
- Realtor’s commission rate.
To locate a qualified real estate agent or broker, property-seekers may consult the following sources:
1. Home magazine and newspaper advertisements;
2. Friends, relatives, and colleagues; and the
3. World wide web.
When searching for an agent online, visitors will usually be required to enter a profile describing the property they are interested in purchasing. Upon receiving the information regarding the prospective buyer or tenant’s real estate needs, online agents submit customized proposals aimed at assisting the former in achieving their objective. The past decade has witnessed a surge in the popularity and number of real estate search engines. Each day, thousands of Americans conduct online real estate searches, and it is estimated that 80% of home purchasers initiate their search on the internet. With the continued emergence and sophistication of real estate search engines, usage is projected to multiply in the years ahead. Online property seekers typically launch their search by entering a zip code or city and state. To narrow their search, they may submit information such as property type, number of rooms, price range, as well as other optional qualifying data. Shoppers should determine what their minimum requirements are and what supplemental features would contribute to the satisfaction of their needs and wants. They should then consider driving by the properties or attending open houses. Upon setting their minds on a particular property, prospective buyers may then request that their agent (if they are represented) provide them with an estimate of the acceptable range for an offer.
Throughout the real estate search process, future purchasers or tenants should keep in mind the following tips:
- To have a clear idea of the type of real estate they are seeking;
- To not allow emotion alone to govern in the decision-making process;
- To ensure that the property they purchase meets their needs;
- To be as specific as possible regarding desired attributes;
- To determine their preferred location (proximity to public transportation, work, schools);
- To ascertain the limitations of their budget;
- To decide whether purchasing or renting makes more sense;
- To obtain pre-approval for a mortgage, which will help in ascertaining the appropriate price range for the real estate search;
- To take into consideration future needs that may potentially arise;
- To utilize scorecards to compare real estate, which helps buyers keep in mind the different features available at different properties; and
- To acquire an understanding of the inspection process, which would simplify facilitate the elimination of homes that fail to pass muster.
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