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Tips To Smartly Avoid Some Real Estate Gimmicks

Posted by Morgan Williams | Posted in Morgage, Tax | Posted on 19-06-2015

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Similar to every line of work these days, there are unprofessional people in real estate too. This does not mean that all agents are bad, as there are good ones too who understand the value of your money, and help you get the best bargain as a buyer, and the maximum sale price as a seller. It is important not to fall into the wrong real estate agents and find the right ones when you want to buy or sell a property. Given in this article (by Wetherell Mayfair Estate Agents) are some of the real estate gimmicks used by unprofessional real estate agents that you can smartly avoid.

‘You will get a bidding war for this price’

A bidding war is every seller’s dream. It happens when two or more buyers compete for the same property making corresponding competitive offers. This actually helps in increasing the price of the property. It is pertinent to remember that bidding wars are very rare. It mostly happens only when the price quoted by the seller is much lower than the market rate. This is used as a strategy by some agents which will is invariably a kiss of death. The risk involved is too high.

‘I will buy your house if it doesn’t sell’

This tactic will increase the number of clients for any real estate agent. The downside is that the seller might end up getting just 85% of the house’s appraised value. Ensure that your agent has listed a good marketing plan – never go by such gimmicks.

‘This is the best property for you; you may lose it if you don’t take it’

A good real estate agent never pushes a property on the buyer on the other hand; he/she must find the best suited property as per the buyer’s requirements. If you sense that your agent is pressurising you to buy any particular property act smart and understand that something is up.

It is imperative for you to understand that there are some agents who will be looking to double end a real estate deal. This is a scenario where the same agent represents both the seller and the buyer. They benefit by commissions from both ends when they seal the deal. Though there is nothing bad in it, a good agent must never pressurise the client to buy any particular property.

‘I have a buyer for your home’

This is one of the most unprofessional methods followed by some agents. This is a tactic that enables agents to get a foot in the door of a potential seller. Remember, that is not the reason you should hire a real estate agent. If any agent does have a buyer, he will come to you with an offer. If he doesn’t, then it should be clear that he is saying it only to get your attention. It is important to get an agent who will help you to price your property competitively in the market.

No matter whether you are buying or selling a property, there is big money involved. It is important to shop around to find a good real estate agent. You can look for online reviews; ask for referrals from family and friends, ensure that you get the most for the money spent and the maximum money from a sale.

  1. Simple Mortgage Rules you need to follow

Are you planning to buy a new house? Do you want to buy an investment property? If your answers are yes, then this is the blog you need to read. A mortgage is the most important and crucial element you have to check when purchasing a property or house. It can be a biggest loan, and you have to ensure whether the loan amount is feasible to repay.

Do you know the meaning of the word mortgage?

Mortgage can also be called as a loan. It is obtained from the banker or lender to purchase a home. The lender will provide you loan on the basis of credit rating, your recent debts, and your current income. It is essential to maintain excellent credit rating records if you have plans to take a loan. Here in this blog, we are going to share some tips that will help you to take a mortgage to purchase your dream home.

Know your requirements:

Before planning to take a loan, first decide your budget and how much loan amount you would require purchasing a property. You should clearly know your requirements. If possible, you can discuss with a loan broker and get an idea how much you have to pay every month and how much loan is necessary for you to buy a property. This will, you will get a clear idea about your needs and requirements.

Understand the fixed costs:

Most of the people will have certain fixed costs, which they will regularly be paying on a monthly basis. You have to plan your household budget and other expenses to stay clear about your needs. It is essential to consider even small expenses or things like credit card bill payments in the fixed costs. If you are going to miss one or two, then you need to worry at the later time.

Remain PITH safe:

Do you know the meaning of the word PITH? It is the abbreviation of principle, interest, heating bills and property tax. When you have planned to take a loan, you need to check the principle and interest amount of the mortgage. You have to see how much you are going to pay as interest and how you will be paying on a monthly basis. If you have plans to repay the entire amount before the loan due date, then you can inform to your lender. Most of the lenders provide complete details and remain transparent in their deals. It is essential to sign up with a leading lender in your area. Do not just stick with one lender. Ask references and contact four to five lenders to find out the best lender. The interest amount should not exceed your budget.

Paying your mortgage:

If your loan amount has been approved, then it is good to plan ahead. When taking a loan, you have to focus on several factors like payment schedule (whether it is weekly, monthly, half yearly or quarterly schedules), interest rate and amortization period. The amortization period can be twenty to thirty years. It is the period where you will take to repay the entire loan amount.