Real Estate

Real Estate Agent Selection Process

real estate agent

When it comes to selling a home, it’s never wise to sell without professional assistance. A real estate agent understands the necessary procedures and have the proper knowledge to put the homeowner at ease while also making the most of the sell. Allow an agent to give the homeowner what he or she deserves. Sell the home at top-dollar price with help from an expert.

Real Estate Agent: Shop and Compare

When selecting a real estate agent, it pays to be a little inquisitive. Instead of making a random selection without a track record, homeowners are encouraged to “shake the tree” and ask around to gain more information. Consult with family members, friends in the neighborhood and friends in town.

It is very possible the people next door could provide a quality recommendation and even share a personal success story to reinforce the claim. It never hurts to ask if anyone has any positive recommendations or general suggestions.

Attend Real Estate Open Houses

If an agent is having an open house in the area where the homeowner’s house is located, then attend. Having an open house in the same area would logically mean the agent is familiar with the neighborhood or general location.

Those familiar with the houses in a given community already know the price tag for most homes. The homeowner can gain a wealth of knowledge by simply showing up and speaking with the agent on duty.

Choose a Respected Real Estate Office

Many times the generic brand provides the same ingredients at half the cost. Not the case when dealing with real estate agents. When it comes to looking for a quality agent, big offices and big names usually equal better resources and better deals. Homeowners are encouraged to “aim high” and consult with the most respected and well known agencies. Big offices equal more people and better service.

Interview Agents

One of the most critical steps in the consultation process is getting to know the actual agents. Homeowners are advised to set up interviews with the top candidates and simply ask them to sell his or her services.

Take important notes while allowing the agents to give the best sales pitch. Make sure everyone interviewed display proof that he or she is a licensed real estate agent. Sit back and let the agent describe his or her best plans for selling the residence.

When a homeowner is comfortable with the promises and money agreements, all roads are clear. The home selling process can commence.

Deed for Lease Program: Is this a Smart Move by Fannie Mae?

deed for lease

Fannie Mae created a Deed for Lease program that could allow homeowners, who default on their mortgage, to stay in their homes for a year as renters. This program does not allow the homeowner to reclaim any equity or ownership, they simply have the right to continue living in the home and paying a market rent. While the market rent issue will surely be debatable, there is a broader question- is this a smart move by Fannie Mae?

How does the Deed for Lease Program Affect the Homeowner?

Homeowners win in this situation. Their credit rating does not take the same hit as a pure foreclosure and they get to live in their home for a year, paying essentially what they can afford to pay. Homeowners also avoid the heavy stigma that comes with foreclosure. Besides the credit hit, going through a foreclosure is tremendously uncomfortable. Furthermore, with an adjustment to their monthly payment, they will not have to worry about putting down a large security deposit or moving to a less desirable area because they can no longer afford their current residence.

How does the Deed for Lease Program Affect Fannie Mae?

Fannie Mae should see more of a mixed bag with this program. On the positive side, they should experience less degradation of value than if the home simply sat idle. Vacant foreclosed homes experience a tremendous amount maintenance issues and vandalism. Additionally, Fannie Mae will avoid the foreclosure process, saving them significant dollars in court costs and eviction fees.

Conversely, Fannie Mae will lose the opportunity to quickly monetize their losses. Delaying the inevitable will not lessen the blow. While renters will certainly keep the house in better condition than if the house were to sit vacant, Fannie Mae can be sure that a foreclosed tenant will not be a good tenant. Furthermore, the asset management costs of managing individual houses will be astronomical. Perhaps to be part of the program renters will have to agree to maintain the house to a certain standard, but short of that, it will be a logistical and financial nightmare.

Lastly, what happens when the year is up? Fannie Mae could potentially need to spend similar costs to evict tenants and go through the same vacant home scenario. Does the tenant need to agree that Fannie Mae can market the house for sale while they continue to occupy it?

While this program seems like a great consumer opportunity on the surface, taxpayers should ask important questions about the ramifications. It is they who will need to pay for the asset management of these properties and subsidize the below market rents. While no one wants to see a family evicted from their home, the current process is in place for a reason.