Real Estate Investing - Fact vs. Fiction

Ever stay up at night and see the guys on T.V. that claim to buy real estate for pennies on the dollar? These guys are some of the best salesmen out there and real estate is not what they are offering. Without ever having to show a single property, they are actually getting people to pay good money for a "system" that will show them the "secrets" of how to buy real estate. While this may be a serious display of good salesmanship, one must ask themselves why they wouldn't buy these unbelievable deals themselves? In reality, it is probably because they are really too good to be true.

There have also been countless books published on ways to buy property under market value and get rich in the real estate business. These products, no matter the form, are not going to help you much with real estate. Somebody once classified a class of buyers known as real estate investors and another class known as "investors." The difference is that "investors" have usually just learned one of the latest real estate buying systems, usually do not own any property, need to get rich quickly, and have expectations that can only be met on a Hollywood movie set. You need to steer away from individuals of this type.

Real estate investors ,on the other hand, understand that investing in property is serious business, can be risky and time consuming, will require them to usually have money already available, is not a miracle pill, and will pay dividends if done in a responsible manner. These are good people to have in your sphere of influence if you are looking to start investing in real estate.

So without diving too far into the details, here are the things you need to know before you buy any investment property.

Fact:

• There are no "miracle" deals that will take you from broke to rich very quickly.


• You will probably already need some money to invest in real estate.


• Most real estate fortunes were made greater by real estate investment, but were not initiated by real estate investment.


• Betting that a property's value will go up due to market conditions is risk filled speculation.


• Valuing property according to its financial condition (i.e. money it generates via rent vs. money it costs via expenses) is the most common form of valuation, and probably the least risky form of real estate investing.


• Great real estate deals can be made in any market.


• Borrowers will probably pay a higher interest rate than they did for their home loan.


• Infomercials and "get rich quick" books do not reveal all the facts and are misleading.


• Investing in real estate can help you pay less in taxes.


• Real estate investments can be traded without immediately paying taxes on your gains.


• A qualified real estate professional can be your greatest ally in finding good property and gaining valuable insight, but you only need one professional if they are properly qualified.

Fiction:

• Real estate investing will take a person from unemployed to rich in a short period of time.


• Good real estate deals can only be found at distress sales like foreclosures and bank repossession sales.


• Its easy to make money investing in real estate for those without any money.


• Property should only be purchased if it will immediately break even or cash flow positive.


• Online "foreclosure lists" are the trick to finding good real estate deals.


• Your home should be viewed as your biggest investment and you should view home shopping as investment research.


• Telling people you are an investor means you are an investor.


• It is a good idea to take advice from everybody, regardless of whether or not they own or have owned investment real estate.


• To find the good deals, you should work with as many real estate agents as you can.

This quick list should give prospective investors a basis for better understanding the principles of real estate investmnet.

People who understand these things and are interested in pursuing the worlds best form of personal investment should contact us to further discuss their needs.

Waiting For The Right Market? Read This!

We all know the importance of timing and its importance is undeniable in all things, even in real estate. So it comes as no suprise that one of the biggest things real estate buyers and home owners agonize over is when to make their move. If Orange and Los Angeles County home buyers and sellers are pondering these same things, the first thing they should do is read our top percentage theory to make sure they understand the current market situation. If they are fairly comfortable looking further into whether the time is right, this guide will help them to make a good decision.


Crystal Balls, Fortune Tellers, Weathermen, and Bar Room Economists

So the paper says I'm crazy to buy real estate, the magazine says I can't sell my house because the market is slumping, the spouse says we just can't stand this little house anymore, my broke friends all somehow claim to be in the middle of buying some foreclosure deal, and the Realtor says that its always a good time to buy real estate, and an even better time to sell my home! What gives?

If there were one topic where almost every American, home owner or not, seems to have some sort of opinion, it would have to be the future of the real estate market. But where do we go for good info, the right answers, and the opinion that will make us rich, or in some cases just less of a dummy.

The short answer is nowhere. The answers to your questions will depend on your personal unique situation and the best thing you can do for yourself right up front, is to be honest with yourself about your situation. Questions that need to be answered are: Why am I looking to move? Where am I going to go? How long do I have? Does this make some financial sense? And how big of a priority is this in my life right now? The next step will be meeting with a trusted professional to further explore your situation and finally seeking a little counsel from only those in your most trusted sphere of influence.

Be cautioned that everybody will have an opinion and none of them hold the crystal ball for predicting the future of real estate. Also keep in mind the old saying that although everybody is entitled to an opinion, not all opinions are created equal. Qualified professional opinions probably have the most potential to be helpful although motivations of those professionals should not go without consideration. lThese opinions can come from your Realtor, accountant, attorney, physician, tax preparer, financial planner, or others.

Opinions of family and friends may have the most potential for keeping your interests in mind, but are often misinformed or simply not up to date on current trends such as market conditions or sale details. One can imagine that it is hard for many of our parents to understand why we would pay todays prices for real estate when they purchased their home many years ago for less than what it costs to buy a car today. Also, we all have that friend who is an "expert" on all topics, and real estate certainly falls within their jurisdiction of "expertise." Realize that no matter what kind of deal you are able to obtain, they are always going have access to a better one.

On a side note, we have in the past helped our clients research their "expert" friend's deals and are always shocked that the proverbial fish seems to always be slightly bigger in story than it is in reality. Nonetheless, we don't recommend spending a bunch of time reasearching your buddy, instead, just humorously concede that their deal will always be "better" and concentrate on your deals...the deals that exist in reality, not fiction and folklore.

The common denominator is that every one of us will need to make decisions for ourselves, albeit some will want a little more help than others. The goal is to sift through the information to find a resolution that makes sense for us on a personal level. Often time it means stepping outside of our comfort zone, and others it means buckling down to earth a bit more. With this in mind, lets now begin to drill down into the details to consider.

The Tide Theory

There was an old thought problem that asked "If a boat sits in a harbor and is tied to a floating dock at high tide, how far will the boat be below the dock when the tide falls six feet?" The answer of course is no further below since both the dock and the boat float, and are therefore equally affected by the rising and falling of the water."

This little problem is key in anaylzing the timing of the real estate market for most home owners. In our case the water is the market, the dock is your current real estate, and the boat is the possibility of buying or selling. In a nutshell, if you are going to buy and sell in the same market, as is most often the case, the relative trend of the market is probably not that big of a factor.

If the market is slow, selling your home will take longer but finding a new home should be easier. If the market is fast paced, selling your home shouldn't be a problem, but finding a home that will fit your needs will take a little extra effort. The same goes for pricing. What you lose in the sale of your home in a slow market, you gain in your new found buying power and vice versa for a hot market.

If a owner of real estate needs to sell a property in order to buy a property, as long as they can qualify for purchase, the market condition should probably not be a major consideration for deciding whether or not to pull the trigger. The following factor may be a more important factor.


Investing In Your Family

If the property your considering buying or selling is a place you will call home, their are internal factors to consider that will usually trump market conditions. The needs of a growing family will make that small home that was once so cozy, close in tighter and tighter as the young ones mature. Also, the constant uncertaintly that comes from a landlord, whether it be in the form of increased rents or possibility of getting notice to leave, make raising a family in a home for rent less and less desireable as we mature and begin to settle in.

It is at these points and others that the security, stability, and comfort of owning the right home begin to really take precedence. There are numerous internal forces such as these that make buying and selling real estate a good or bad decision. Often the best advice regarding these factors are coming directly from your own family. We think it is a great idea to listen.


Selling At The Tip Top, Buying At Rock Bottom

There is an natural obligation that every one of us feels in the bottom of our stomach when the time comes for a big decision. We want to make the right move, the best decision, and often times with real estate, this desire becomes an infatuation.

When we have some real estate to sell, we want to do it at the "top" of the market and when we buy, we only want to do it when prices "bottom out." But does this really make sense? How can you possibly know that prices will continue to rise or fall?

The truth is you can't, and it doesn't matter anyway, because you don't need to sell at the top or buy at the bottom to buy good real estate deals. Consider first the internal and external factors of your own life before getting wrapped in market talk, especially if the subject property is a home and not an investment property.


Sensationalism In The Media

Prospective home buyers and sellers also need to understand the role of our local news outlets with regards to real estate information. Keep in mind that these outlets (T.V., newspaper, and internet) have an obligation to attract viewers in order to gain ratings and advertiser money. As a result, the outlets will focus on and often exaggerate the sensational topics with regards to real estate.

Basically, people will not buy papers or watch newscasts if the headlines read stuf like "Real Estate Market Normal", "Prices Remain Unchanged", or "It's A Good Time To Buy A Home." Instead, headlines like "Real Estate Prices Plummet" and "Massive Foreclosure Epidemic" are what is needed to sell papers and gather advertisers. Consumers should recognize the motives of their favorite news outlets, and the business they are in, and take all stories with a grain of salt.


The Bottom Line

As any prospective home buyer or seller can see, there are numerous things to consider in deciding whether it is a good time for you to buy or sell real estate. This guide should make coming to some sort of decision much easier and effective. If you feel like it might be a good time for you to buy or sell Los Angeles or Orange County real estate it would be a good idea for you to contact us and discuss it further. Regardless of whether the time is right, we look forward to hearing from you.

Bank Repo Real Estate - A Buyer's Guide To Bank Owned Properties

What is Bank Owned Real Estate?

Bank owned real estate is known as many things throughout the country. Agents will refer to it as R.E.O for "real estate owned" and consumers most likely know it as "Repo" property. Whatever you want to call it, bank owned real estate can present some excellent opportunities to home buyers and investors alike.

R.E.O. property is real estate that has been foreclosed upon by the lender or bank, brought to public auction where it was not purchased, and now is being sold by the bank through a broker with the consultation of an attorney.


Why Should I Buy R.E.O Real Estate?

Bank owned real estate is usually brought to market at a very attractive price in order to generate a quick response from qualified buyers. Banks do not like to own real estate and are usually looking to unload the properties as quickly as possible in order to mitigate their losses. This presents an excellent opportunity for consumers to capitalize and pick up some fantastic real estate deals.


What Are Some Things To Watch For With Repo Property?

You've got to imagine the mindset of the former owners of the home if you really want to understand one of the downsides of R.E.O. real estate. The previous owners probably did not leave on favorable terms and may have been vindictive toward the lender, the courts, and probably the entire real estate process.

As a result, buyers of bank owned real estate often find that many fixtures are damaged or even missing. The overall condition of the property will probably rate somewhere between fairly good to absolutely disgusting. Repo home buyers should not expect to find a sparkling, newly remodeled home, with all the latest decor. In fact, bank owned homes often only appeal to people with a good ability to see the potential in something. If you lack this foresight and vision, bank owned real estate may not be for you.


What Do I Need To Buy Bank Owned Real Estate?

With R.E.O properties, more so than any other kind of residential real estate, the guidelines for buying them are fairly clear and inflexible. Many banks have a standard Counter Offer that they send to all prospective buyers outlining their parameters. Here are the most notable of these very typical guidelines:

1) Repairs are rarely made to the property and no warranties will be granted.
2) Banks like a larger deposit than in a normal real atransaction.
3) Absolutely no contingencies for the sale of buyers property will be accepted.
4) In most cases, the price will deviate very little from the banks low asking price.
5) The buyer will need to close on a specified date or risk late penalties.
6) Termite reports or natural hazard reports are often purchased by the buyer.

Although most of these conditions are rather self-explanatory, a few have implications that R.E.O home buyers need to understand very clearly.

The first item means that repo buyers need to satisfy themselves with regards to the condition of the property. They still, however, will have a "no harm" period during escrow where they can have a professional inspector look at the property and decide whether or not they like the condition enough to continue. This is all without risk of losing their deposit.

The third item means that if the prospective buyer needs to sell some real estate in order to buy the bank owned property, they need to sell it first before the bank will even consider the offer. This is often a major hurdle but may not be an issue with first time homebuyers or investors.


Where Do I Find Bank Owned Real Estate?

Bank owneed real estate is not for everybody, but for those who enjoy getting a good deal, and are prepared to deal with some probable repairs, the benefits can be priceless! Home buyers in Orange or Los Angeles Counties, who are willing to tell us a little about what they are looking for, will find our Bank Repo real estate finder very helpful. People outside these areas can also contact us if they would like to be directed to a top R.E.O. specialist in their community. Here's to a good deal!

Finding The Orange County Home Buyers - Our 10% Theory For Real Estate Sales

Orange County, California home buyers are certainly not as plentiful as they were for the last six or seven years. If anybody has picked up a newspaper recently, they are well aware of the headlines that that would like them to believe that absolutely no homes in Orange County have been sold in the past twelve months! Headlines such as "Record Foreclosures", "Flat Sales", "Prices Falling", have been doing enough damage on their own, to speak nothing of some rather famous pundits and authors adhering to a lazy broad brush generalizations in stating things like "Don't buy any real estate for at least a few more years!" Stating things as blatant as this is not only irresponsible, but it just could not be any further from the truth! Homes are still being sold, and buyers are still actively looking for houses in Orange County. The question is how to find them.


Perceptions Of Real Estate In Orange County

The average Orange County home buyer has certain perceptions of the market and the sellers of the real estate have perceptions as well. People looking at purchasing the Orange County real estate are often told that it is a buyers market, all the sellers are in foreclosure, and that they really should wait more as prices will come down. The owners of Orange County real estate have some perceptions of their own. They usually believe that the buyers have magically disappeared, the ones that do exist are all trying to make low ball offers, and that if they just wait, the prices will come back.


The Reality of Orange County Realty

Obviously, we have some discrepancies of opinion between the two sides! The fact is that real estate continues to sell throughout most of Orange County, albeit at a slower pace than two years ago. Real estate always has been and always will be a local business, and by local we mean zip code, neighborhood, or even street specific. It is completely normal to see a rapidly slipping market on one side of the street, while just on the other side, sales continue to chug along.

While Orange County real estate statistics remains rooted at a local level, there are some general concepts that can be applied across the county. One such concept is what we call the top percentage principle. Our principle states that only a certain number, or percentage, of homes will sell each month within a specific neighborhood, and a house will not sell until it enters into that top percentage of real or perceived "deals." For example, lets say the top percentage in a certain neighborhood is 10%. This means that if a home owner in the area wants to sell their home, they will need to be in the top 10% of real or perceived "deals" within that area in order to get it sold. If they are not, they will need to break into the top 10% of deals for next month or the home will still not sell. The actual percentage number will fluctuate with area and time, but the concept itself will hold steady.

Sales volume is not the only factor that should be measured at a local level. Home prices throughout Orange County are also fluctuating zip code to zip code. Even though its beyond the scope of this post, we can provide home buyers with many examples of areas in the county that are not in a price decline if they'd like to contact us.

What it all means to Orange County home buyers and sellers

Sellers:

For sellers of the local real estate, the most important thing they can do is get into that top percentage of homes that are selling, and get there quickly! This can be done a few ways, but remember first that perceived value is just as important as tangible value. Perceived and tangible value can be created by a combination of the proper marketing, benefits, and competitive pricing. More often than not, home sellers do not mind the first two factors, but find the third to be excruciatingly painful. Despite the pain levels, Orange County real estate owners need to have their Realtors evaluate the market and get their property priced according to what has sold this month. This needs to be done quickly because time is not the cure when new listing are coming up every day making it tougher and tougher each month to get into that top percentage.

As a seller of Orange County real estate, if your saying things like "I can just wait for the right buyer/market", "I don't really need to sell", or "I need xxx dollars despite what the research says" our best advice for the market is to just get out. This truly is not a time for unmotivated sellers to "play the market" and just see if they can get some unjustifiable price. For motivated sellers who really want to sell, careful adherence to our top percentage principle will enable them to find the buyers and ultimately get their Orange County home sold.

Buyers:

Orange County home buyers also need to understand a few things about the current market. Despite what the headlines read, the best deals on the market are selling, and often selling fast. To illustrate this point, we operate a section on our website that we call the Orange County hot property of the week. In it, we post some of the best deals to be found on property in all types of price ranges. As of this date, we are needing to update our section at least every week and a half or our site is outdated as these good deals are just not available. This speaks volumes as to the health of the market!

It is true that there are many properties on the market in Orange County, and as we all know, many of them are still grossly overpriced. Some sellers have gotten ahead of the curve and offered attractive properties at very competitive prices. These are the properties that fit into our top percentage principle. Now then, just because a limited number of homes are actually selling, and some of them may be distress sales, like foreclosures, it does not mean buyers will be able to buy the homes for pennies on the dollar. This concept is best explained in our 6 part write-up on Orange County foreclosure property.

Basically, if Orange County home shoppers want to become Orange County home owners, and do so by finding a good deal, they had better have good help, reasonable expectations, and be able to move quickly. The best way to do this is to let a local real estate team help in finding these good homes, and the best way to do that is to use our home finder service where they just tell us a little about their needs, and we custom build a home search campaign around those needs for free! Best of luck and happy hunting.

Whole House Fans - An Energy Efficient Alternative To Home Cooling

Whole House Fans - Summer time in Southern California brings along warm temperatures and large electricity bills. For those of us without the modern convenience of central air conditioning, we have a time of year when tempers flair and households can seem just a little edgy. For those of us with central air, we know very well that installing a central air conditioning system is not only fairly expensive to purchase, but also pricey to operate. To help combat high energy bills or just cool an uncomfortably warm home, we have a great alternative to the normal solutions of window units, room units, and ceiling fans.

This alternative is known as a whole house fan and does almost exactly what the name implies. Instead of circulating or blowing the same warm air as some of the above solutions do, a whole house fan pulls cool air from outside into the home and pushes (actually pulls) the warm air out through the attic vents. The result is that you can quickly cool your home to approximately the same temperature as the outside air. Most of the time, especially evenings when most return from work, this air is considerably cooler than what has been bottled up in the home all day. Of course you could get the same effect on a breezy evening by opening all the windows but it would take considerably longer and the breeze is never guaranteed.

There are a few requirements when you decide to operate a whole house fan. First, you need to have adequate clearance in the attic. Usually you won't need much more than a couple feet. Second, there must be appropriate ventilation in the attic for the warm air to escape. This would be a good time to differentiate one point. A whole house fan IS NOT the same as an attic fan. An attic fan merely pulls hot air out of the attic but does not pull it out of the home nor does it bring the cool air in. The two types of fans are best when used in conjunction with one another.

To use a whole house fan, one must open some windows when in use. Opening one window in a single room will quickly cool that room while opening up the entire home will more gradually cool the whole living space. Both methods have their respective time and places.

Whole house fans come in different sizes with a variety of different features. We have seen models from 24-30 inches in diameter but the actual size is a little larger after adding the vent cover. Multiple speeds and wall switches seem to be some of the more popular features.

We've seen fans costing between $180-250 depending on size, manufacturer, and features. Installation of the fan is extra and can be done in a few hours by a reputable contractor. Currently, Southern California Edison is givin $50 rebates for these fans but one should always check first for current program availability. For the do-it-yourselfers, please note that installation will require careful thought regarding placement as well as some light carpentry and electrical work. We would recommend anybody concerned with their ability to properly install the fan contact a licensed reputable contractor.

Although these fans can be a real blessing during summer heat waves, they are not without their limitations. Whole house fans can only cool the inside temperature to the approximate temperature of the outside air. If the outside air is 100 degrees, the house won't get much cooler than that. So if one has central air conditioning, there are some days when it will just need to be used in order to cool the home. Regardless, many summer mornings, evenings, and nights in Orange and Los Angeles Counties are cool enough to really make the whole house fan a sanity and money saver!

Orange County Real Estate - The Truth About Pre-Foreclosure Short Sales (Part VI)

Rule #6 - Prime Your Pump

Link back to Part V

Nothing is more frustrating to potential distressed property buyers then to find the absolute perfect deal and not be able to move quickly enough to purchase it. Because of this, prospective investors need to prepare now for the property they will find tomorrow.

Loan Pre-Qualification - Getting ready means many things, the first of which is to figure out finances. Short sale buyers who do not have enough cash to purchase the entire property need to talk with a reputable real estate lender to not only find out how much they are able to borrow, but also what kind of loan product they would like. There are a variety of products available and going into the details is beyond the scope of this article, but it is important to become familiar with the options before finding that deal of a lifetime.

FICO Scores - FICO Scores are a huge determining factor in whether a buyer will be able to obtain a loan. Read this quick article on FICO scores to learn more about this relatively mysterious topic that will be key in helping buyers obtain short sale property.

Down Payment & Closing Cost Money - Home buyers will need to figure out if they will be making a down payment to purchase the property. In addition to a down payment, they will also usually need money for closing costs. Real estate transactions take a lot of work from numerous people in order to consummate legally and safely. Each of these people will need to be paid at the close of escrow by the buyer and sellers of the property.

Some examples of parties who may be receiving closing cost money will be the escrow company, mortgage company, tax collector, county recorder, and title insurance companies. Please note that real estate agents are not paid by closing costs and are usually not paid by the buyers of the real estate. The seller (or the bank for short sales) will be the one paying the Realtors.

Also note that in some cases it may be possible for the seller to pay all or some of the closing costs. Regardless of whether they actually end up using it, prospective foreclosure buyers need to communicate with their agent and loan officer the amount of money they have available for down payment and closing costs. The only way to communicate it effectively is to provide bank statements or some other proof of funds for the money they intend on using for purchase. Lenders are not asking to pry into a buyers entire net worth, just for proof of these real estate related funds.

Choice of Lender - There truly are so many choices with regards to mortgage companies that the decision is often overwhelming. Experience has shown that almost everybody promises the world, but few ever deliver. In an effort to save some people future headaches, we've put together a list of preferred vendors for orange county home loans. We strongly urge consumers to use these vendors as they have saved many loans for our clients who had originally elected to get a loan elsewhere only to have the companies claims prove to be empty promises.

With a little legwork up front, short sale home buyers will go a long way in making sure that they don't miss a rare opportunity. Once they are ready to pounce, they will find our premium Orange County real estate finder to be priceless in finding that perfect property. Proactive consumers will also find that our interactive Orange County homes for sale map is as helpful as it is exciting. Those who wish to learn more about the area, should see our Orange County real estate guide for insider information and local neighborhood reviews. Happy Hunting!

Orange County Real Estate - The Truth About Pre-Foreclosure Short Sales (Part V)

Rule #5 - If You've Got The Right Agent, Show Them Your Commitment

Link back to Part IV

Most people are aware that it will be a good idea to work with a real estate agent that is well versed and experienced in the short sale market, but many people do not realize the commitment they in turn need to show to their real estate agent if they really want to deal effectively with short sale properties.

To understand this, it helps home buyers to see the world from a Realtors perspective. To a real estate agent, a short sale does not necessarily equal a paycheck. Agents do many things for free within the industry, and as much as they understand that the #1 job is to help people buy and sell real estate, they also have bills to pay.

Buyers looking for foreclosure real estate need to understand that many times short sale properties do not pay as well as normal real estate. Many times the difference is very significant, to the tune of a 30-50% reduction in pay! This alone makes pre-foreclosure real estate less attractive to your Realtor.

In addition to being less profitable (for your agent), short sale properties can also be more time consuming. The extra time it takes to research the properties, negotiate with the bank, and write purchase contracts make them even less appealing from an agents perspective. The silver lining is that Realtors, for the most part, do like to help people and will sometimes accept a pay cut if it can greatly help a wide range of people. In the case of a short sale, it helps the buyers find a deal, the seller salvage their credit, and the bank avoid foreclosure. With that being said, pre-foreclosure home buyers need to do a few things to show their agent that they are serious, qualified, and loyal.

To show that they are serious, prospective home buyers need to first be honest with themselves about their goals. Then they need to share these goals with their agent as it will help both parties to determine if the expectations are ones that can realistically be met.

Being qualified is the next hurdle that a prospective home buyer will need to navigate if they want to work with a top short sale professional. This will mean talking with a lender about financing options, credit history, down payment, closing costs, and employment. Once again, much of this info needs to be shared with the Realtor, not only to prove buyer is qualified, but to make sure the buyer is getting a reasonably good deal.

The last step of entering into a buyers agreement will show your real estate professional that you have chosen to work with them, and solely them, in finding a pre-foreclosure home. There is no real advantage to working with multiple agents if a buyer is already working with one of the best. A written buyers agreement will go a long way in solidify this relationship all the way up until the date of the agreements termination.

With the nature of short sale real estate, it is not uncommon to employ a strategy where a prospective buyer will make multiple low ball offers on a wide variety of property in an attempt to find a willing seller. Without getting into the effectiveness of this strategy, we can say that this approach will create a substantial amount of extra work for the real estate agent. In addition to the above steps, prospective short sale buyers looking to use a canvas type approach should expect to provide additional compensation to their agent on a "per offer" or "time" basis out of their own pocket. It may be realistic to have some or all of this compensation refunded to the buyer after the close of escrow on a property sold through the subject agent.

A final note on trust and loyalty deals with the pricing on real estate. Assuming one has followed our steps for hiring the right Realtor, it is a great idea to listen to your agents advice about pricing for the subject home. All too often, home buyers hear their agents price opinion but don't really listen when it comes time to make offers. It should be understood that home buyers are not negotiating against their agent! Real estate is a team sport and it is wise for consumers to take their teammates experts advice very seriously.

While this 5th rule was mostly about protecting the agents time and resources, prospective buyers need to also understand how these acts will benefit them. The principle of reciprosity is in full effect as an agent who knows they have loyal, serious, qualified buyers will be in a much better position to find property and will actually be more likely to bring the good deals to these buyers first. This fact alone can pay big dividends to short sale home buyers.

Link to Part VI