5 Things Home Buyers Look for in a Real Estate Agent | Embrace Home Loans (2024)

FAQs

What buyers want most from real estate agents? ›

Buyers want someone they feel comfortable and at ease with. And according to Open Listings, friendliness, politeness, and just plain being nice are huge priorities for buyers. They might love house hunting online, but a personal connection with their agent can go a long way.

The three most important factors when buying a home are location, location, and location. Too often I hear people talking about making decisions based on the home itself, instead of the location, and that is a mistake.

A home's value is affected by local real estate trends, the housing market, the home's condition, age, location and property size.

The process can differ among lenders but in every case, there are six boxes to check off when applying for a home loan: Get your down payment together; pick a lender, check your credit score, check your debt-to-income ratio, set aside closing costs, and apply for pre-approval of a mortgage.

1. The Location. They say the three most important things to think about when buying a home are location, location, location. You can change almost everything else, but you can't change your home's location.

What are the six main factors to consider when choosing a house? ›

Many people believe that location is the most important factor to consider when selecting a home. Current interest rates can affect the price of a home. Negotiating a purchase price for a home usually involves an offer and counteroffers.

To buy a house, you'll need a qualifying credit score and debt-to-income ratio, proof of income and employment, and enough cash to cover the down payment and closing costs. Specific qualifying requirements will vary depending on your loan program and mortgage lender.

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.

Making an offer above the asking price is a common trend in the California real estate market in 2021. It's largely driven by a stark imbalance between housing supply and demand. Home buyers are making aggressive offers in order to succeed in a highly competitive market.

In addition to price, sellers often consider how easy your offer will be to close. For example, a cash offer without inspection or financing contingencies is very appealing to many sellers. Also, one that allows the seller to stay or “rent-back” for a period of time can help.

Making a unique presence in your community with events, relevant virtual resources, and consistently great photography on your listings can make you really stand out as a real estate agent. Be sure to highlight unique features of your listings to curate experiences for your ideal buyers.

Active listening skills: Top agents make it a point to listen to clients. They ask questions and paraphrase the response to ensure they understand their client's needs. Written communication skills: Preparing professional emails, contracts, marketing collateral, and website content is critical to success.

What are the three C's of real estate? ›

They evaluate credit and payment history, income and assets available for a down payment and categorize their findings as the Three C's: Capacity, Credit and Collateral.

There are five main categories of real estate which include residential, commercial, industrial, raw land, and special use. Investing in real estate includes purchasing a home, rental property, or land. Indirect investment in real estate can be made via REITs or through pooled real estate investment.

The current and future importance consumers place on the four factors of value (Desire, Utility, Scarcity, and Effective Purchasing Power) represents Demand and Supply of the product or service.

The home should be airy and well-ventilated

A home must reflect good vibes, and well-ventilated homes are ideal for living. Dwellers stay happy and healthy in a well-ventilated home where ample sunlight comes in and air flows well. Good ventilation is important for several reasons.

What are the features of an ideal home? ›

An ideal home is one that needs little maintenance and is sturdy enough to last a lifetime. Well-designed spaces that are optimised to offer maximum utility should be preferred. The architecture, spatial planning and master planning of the layout should be accommodative of your family's needs in the long run.

Changes in the real estate market can lower the value of your home. Natural disasters and climate change can lower your property value because the property is a greater risk to purchase. Foreclosures in your neighborhood can also drive down property value.

If you haven't renovated your home in the past 30 years or so, it won't show well when you put it on the market. In other words, it won't get the same price as a similar home that's been maintained and updated.

To determine whether you can afford a $650,000 home you will need to consider the following 4 factors. Based on the current average for a down payment, and the current U.S. average interest rate on a 30-year fixed mortgage you would need to be earning $126,479 per year before taxes to be able to afford a $650,000 home.

What do lenders consider a good debt-to-income ratio? A general rule of thumb is to keep your overall debt-to-income ratio at or below 43%.

You can borrow $50,000 - $100,000+ with a 720 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

Additionally, you'll need to maintain an “acceptable” credit history. Some mortgage lenders are happy with a credit score of 580, but many prefer 620-660 or higher.

The average credit limit for those with a 700 credit score is right around $4,500. However, if you were to pull out a 700 credit score personal loan, you should be able to access more money than you would with just a credit card.

What is the rule of thumb when making an offer on a home? ›

The rule of thumb is usually between 5 and 10 percent of the home price. Bear in mind that you could lose the money if the deal falls through, so it's important not to put up so much that you'd be ruined if you lost the cash.

Typically, a lowball offer is considered to be at least 20% below the asking price. If you're offering 10% below, the property should be in a good condition but may just need some cosmetic work done. The goal of offering 10% below the asking price is to use those extra funds to cover the repairs.

A cash offer is an all-cash bid, meaning a homebuyer wants to purchase the property without a mortgage loan or other financing. These offers are often more attractive to sellers, as they mean no buyer financing fall-through risk and, usually, a faster closing time.

Question: What type of property appreciates faster – condo, townhouse, or single-family? Answer: Since 2012, the data is clear – single-family homes appreciate the fastest, followed by townhouses/duplexes, and then condos. Since 2012, the average single-family home has appreciated 69% compared to 27% for condos.

Industry professionals overwhelmingly named appraisals as the biggest obstacle they face in getting deals to the closing table.

The 70% rule helps home flippers determine the maximum price they should pay for an investment property. Basically, they should spend no more than 70% of the home's after-repair value minus the costs of renovating the property.

The hottest housing markets include those markets in North Carolina, Colorado and Texas that were also popular during the pandemic, including Raleigh and Durham, Denver and Austin. Markets to watch that improved the most between November and December 2022 include Portland, Oregon, Richmond, Virginia, and St. Louis.

What is the toughest thing for real estate agent? ›

The 3 L's: Listings, Leads, and Leverage

The three key L's that are necessary for garnering long-term success include Listings, Leads, and Leverage. Gary Keller became a successful real estate agent because he was able to complete numerous contracts in a short period of time.

Dealing with unrealistic sellers

Many sellers compare their houses to those in the neighborhood and want to sell them as quickly as others. It's your responsibility to make them understand the real scenario. This is one of the most common problems that real estate markets face.

Communicate. Being a good real estate agent means always being in touch with your clients—past, present, and future. Present clients looking for their next home are always in need of consistent communication with you.

Colonial. Colonial-style homes have the highest resale factor when all other elements are equal.