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Questions Open House Hosts Ask You as a Guest and Why – Number Three of Three

Questions Open House Hosts Ask You as a Guest and Why – Number Three of Three

Question number three:
Are you working with a real estate agent? OR (Have you signed a representation agreement with a Realtor?)
Why they are asking: Agents respect boundaries out of courtesy to other agents. If you are represented by an agent already and the agent knows it, the open house agent is not allowed by the National Association Code of Ethics to ask if you would like them to represent you.

Open house sign

Open house sign

The natural next or follow-up question is who the agent is who is representing you. Many agents who do a good amount business in a particular neighborhood or area know other equally busy agents. The agent can follow up with your Realtor to find out what you thought about the home and if you are interested in buying it – because the other agent REPRESENTS you. So, yes, provide your agent’s name. Your agent, in their pre-buying consultation with you, should will hopefully have prepared you for this to very likely happen if you are going to open houses without them, which is VERY COMMON.

Have fun going to great prospective homes to see them – OPEN HOUSES ROCK!

Cheers!
Ken

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Questions Open House Hosts Ask You as a Guest and Why – Number Two of Three

Hi!

Questions Open House Hosts Ask You as a Guest and Why – Number Two of Three

Time for the second question that you might have had asked by a Realtor hosting an open house, and why they might have asked it.

Open House

Number Two:
How does this house compare to other homes that you’ve seen at open houses?
Why the agent is asking: They want to know if the other homes are comparable – or offer you more or less – than this house. To get your independent input on how this house compares and can win in the game of selling first. And know if possibly you might be the one buying it. If you are, they can answer more questions for you on the house, or be helpful in other ways. Be open with your answer because what you tell the agent can be helpful to the Seller to get it sold – no matter if you or someone else buys it!

Cheers!
Ken

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Questions Open House Hosts Ask You as a Guest and Why – Number One of Three

Hi!

Recall all the open houses you have been to and when the host asked you questions…You might wonder what are the most often-asked questions open house hosts ask you and why they ask them?

Number One:
How long have you been looking for a house?

Why host is asking: The agent wants to see how far along in your search you are, how many homes you have seen, how motivated you are to buy and what your general experience has been. They want to be of help to you and, of course, they are there to help sell the house you are at.
If you allow the Realtor, they can give you helpful information to aid with your search such as additional neighborhoods that might fit your criteria or they may know of homes coming on the market – ones that are not listed yet. Just to name a couple of MANY great ways that they can be of assistance.

open house image

Watch for question number two – upcoming!

Cheers!
Ken

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Game Changer Moved to October 3, 2015

HI there!

The authorities have moved the requirements as stated in my last post to October 3rd. Please let me know what questions you have to help you be prepared.

Cheers,
Ken

It’s a game changer on August 1. Be prepared. New laws affect home buying and selling.

Hi!

It’s a game changer in August 1. Be prepared. New laws affect home buying and selling. One of the biggest changes in the real estate industry in a long time is coming in less than a month. This will be challenging and there will be hiccups. The landscape of home buying and selling is changing dramatically. This has been very little reported yet.

For home loans originated on or after August 1, 2015, the home purchase for the buyer and the sale for the seller will be affected – causing a potential doubling in time from the point of going under contract to sitting down at the settlement table.

happy house

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), enacted in 2010, created the Consumer Financial Protection Bureau (CFPB). The CFPB issued its TILA-RESPA Rule in November 2013. This becomes effective August 1, 2015. The Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z) are in put into place at that time.

There are strictly defined timeframes for disclosure of information to the buyer. This change is meant to make the language of the terms of the loan more clear to the consumer. Secondly, the forms provide more information than in the past. This is designed to help buyers determine that they can actually afford a given loan.

There are two new forms Dodd-Frank is requiring:

1. The Loan Estimate. It includes material/information that has already been available on the Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosure. The Loan Estimate form was designed to provide information to consumers to help them understand the features, costs and risks of signing for the credit they are applying for. Important to note is that for all loan applications filed after August 1, 2015, the Loan Estimate must be provided no later than the third business day after the buyer submits the loan application to the lender.

2.The Closing Disclosure, which combines the HUD-1 (settlement statement) and final Truth-in-Lending disclosure. This form must be provided to consumers at least three business days before closing.

Here’s what Buyers and Sellers will want to know – what this means for you, bottom line.

TIMING
1. Expect 45-60 days from contract ratification to settlement. In the DC area, 30 day settlements have been the most common. Bottom line: closings will be 50% longer to twice as long as in the past, in general. Big difference in planning.
2. There is the strong likelihood of lender and seller delays, especially at first as the bugs are worked out in the new process.
3. Back to back and coinciding settlements may very well be problematic, and not advisable.
4. There will not be any more last minute changes to the settlement statement. Plan ahead to get inspections done early, repairs done well in advance of closing and do the final walk-thru, instead of 1 day or same day before closing as is most normal in our area, at least seven days before. You will want to know that the buyer and seller are in agreement as to the condition that the home conveys in.

STRATEGY
1. To get the best possible negotiating advantage as a buyer, pre-approved for a loan prior to August 1, 2015. Buyers who did not get approved prior to August 1, and are competing for homes in our low-inventory market, will have to show a good hand against your faster closing date!
As a seller, you will have to be prepared to weigh the advantages of a quicker sale against other strong terms if you are comparing contracts in a multiple contract situation. This is trickier than weighing more apples to apples currently.
Being ready and ahead of the crowd of fall shoppers who are not approved will win buyers the homes they want in a shorter time – and even possibly at a better price, if negotiating is done expertly.
And for sellers, having input on the complex process from a real estate consultant will be a strong advantage, so that items and eccentricities are not missed that could cost the seller time and money.
2. Buyer and sellers need to plan more time to make the whole process happen, and will need to have more patience as the bugs are sorted out of the system. An agent to represent you who is knowledgeable in the changes and is patient will be a huge asset to get you what you want in your purchase or sale.

I hope this is helpful. Please contact me with questions or for a free buying or selling consultation. I can refer you to a great lender also.

Cheers!
Ken

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