Here are 5 reasons why you should hire a Real Estate Agent

1. Real Estate Education

Agents in the Indianapolis area all cost about the same, so when hiring an agent you just have to find the person who best fits your needs. Hire someone who has more education and experience than you do with real estate. We all have to get our real estate license for a reason and that is to gain the knowledge and expertise to buy and sell real estate.

2. Knowledge of the Area

Agents have many connections leading to great knowledge about your neighborhood. You may know that a home sold for $300,000, but you may not know that it was in escrow and that it had upgrades.

3. Keep the “Just Looking” People Away

Do you want serious buyers or those who are “just looking around?” Agents can help filter all of the people who will just waste your time and energy and provide you with real buyers.

4. Professional Networking

Real estate agents network with other professionals in your area. This can be very helpful when marketing a home for sale and in helping buyers locate their dream home. Agents can also recommend vendors who have a good reputation for efficiency and competency and give you a nice selection with competitive pricing. The background information they provide can help you in making wise selections.

5. Taking Care of the Paperwork (this is a big one)

Purchase Agreements can run 10 pages or more these days. This doesn’t include the Federal and state disclosures. One tiny mistake or omission on these papers could cost you thousands of dollars or land you in court. It’s good to have agents to help you get through this process and to ensure that all of your  i ’s are dotted and t’s are crossed (so to speak).

Holly Berry, the Real Estate Dog, Asks…

Do you  know the difference between a Realtor and a Real Estate Agent?

Although both are licensed to sell real estate, the basic difference between a real estate agent and a Realtor is that a Realtor is a member of the National Association of Realtors where they must subscribe to a “Realtors Code of Ethics.” There are 17 codes and you can read more about them by clicking on the link below.

2010 Code of Ethics

1.  Spiraling Price Drops Are Ending on a National Level.

Prices in the entry-level market have pretty much bottomed out (in most US cities), which should prevent extreme price drop wars on housing this year. Those 50% price declines from 2009 should become a thing of the past

2.  Home Prices Are Stabilizing in Indiana.

According to national studies, the housing appreciation rates in the Indianapolis area should increase by 0.35% this year. That’s not a mammoth number, but considering that the average increase for all 50 US states is -3.36%, we’re above the average.

3. Take Advantage of the Government’s Tax Credit Program.

The $8,000 first-time home buyer tax credit program introduced in 2009 was extended and expanded. First-time homebuyers who sign a binding contract to buy a home by April 30, 2010, and close on it by June 30, 2010, will qualify. The program’s maximum income limits have increased from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples.

For those who have owned their homes for at least five years and want to trade up to a different primary residence, a separate $6,500 tax credit has been added. Also, homeowners who are behind in their real estate loans are eligible for a loan-modification program with their current mortgage company through the Making Home Affordable Program.

If you’re seriously considering buying a home this year, take advantage of these tax credits, because they expire on June 30, 2010, and most likely won’t be renewed again.

4.  New Homebuyers Can Find Down Payment Assistance.

There are several down payment assistance programs for first-time homebuyers at the federal and local levels. You can find them by searching the internet for “down payment assistance programs.”

5.  Forecast is Higher Mortgage Rates Later in the Year.

A 30-year fixed-rate conventional mortgage is between 4.75% to 5.00% for qualified buyers right now.  However, many mortgage specialists are predicting this will increase later this year. If you have a loan today, you may want to lock in the rate.

6.  No Need to Wait Out a Long Recovery.

It’s very tempting to compare housing prices today to what they were before the bubble burst. If you’ve been in the same home for several years, you may still enjoy a nice profit on the sale of your home in 2010. For example, let’s say your house was appraised for $300,000 a few years ago, and now (after doing comparables) your agent recommends listing it for $225,000. At first this may look like a loss to you, but considering what you purchased your home for 10 years ago (let’s say in our example $175,000), you’re actually going to enjoy a $50,000 profit.

7. Sellers, Price for Today’s Market.

Most homes in the area can go under contract in 60 days or less if they are listed right. This doesn’t mean you have to “give away” your home. Listings that generate traffic are those whose owners have adjusted their expectations based on comparably priced homes. Be sure to work with your agent in pricing to present conditions, not to a “fantasy” market that doesn’t exist today.

8. Rent-to-Own is an Option.

Rent-to-own allows buyers to “try out” a home for a designated period while paying a higher-than-market rent to buy down an eventual down-payment. This helps renters invest in a home while they repair credit, and it also helps sellers generate some revenue on an empty house. Make sure your Realtor drafts a specific contract that spells out all the options.

9. Selling? Great Time for Home Improvements.

Now may be the best time to fix up your home for a potential sale. Low financing, reduced construction materials and lower contractor costs make home improvement more affordable. Repairs that yield the highest returns are kitchen and bathroom makeovers with an emphasis on counters and cabinets.

10. When You Close, Ensure the Contract is Complete.

During this real estate market it’s very important to avoid any contract problems. Make sure you get a good agent who can help you avoid problems, and ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale. In Indianapolis, verbal conversations are not enforceable. If you intend to keep the attached window curtains or the water softener, now is the time to include these in the contract. Changes can be made later, but often with a monetary concession.

Your Real Estate Luck Will Improve.