Real Estate Listing Myths 

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Large Agencies Sell Homes Faster – False.

10 years ago, this statement may have been true, but today there is no Data that shows that Large agencies sell homes any faster than smaller agencies, or even faster than For Sale By Owners, all, when on the MLS provide the exact same information to buyers.

Large Agencies have more buyers – False.

Less than 5% of all homes sales were purchased through the company which listed the home. This is a misconception held over from before Real Estate hit the Internet.

If an Agent tells you that they have buyers, simply invite them to bring you one and offer to pay them a buyer Agent Commission.

Real Estate Teams are more productive sellers – False.

Real Estate teams are very common today.  Fact most do not work as a team, they are simply groups of realtors who work under a common “Associate” Broker within an office, they do not work in the traditional definition of a “TEAM” to buy or sell homes.

Real Estate agencies will not show discounted/flat fee listings – False.

Buyer Agents don’t know if the listing side is discounted, the only commission information which is displayed in the listing, is for the buyer agent, which is based on the commission you chose.

Discounted Commission listings receive inferior service – False.

A full-service listing requires the discount listing agent to provide the same full service that any other Full Fee (6%) realtor provides, such as: Arrange Appointments, Accept/Present Offers, Advise on Offers, Assist with counter offers, Negotiate for seller.

Discounted Commission Real Estate Offices cannot survive – False.

Companies that manage expenses and keep overhead low, can significantly reduce commissions and still be profitable.  Large Real Estate companies are burdened with high overhead, such as Expensive Rent, office staff, and utilities, and therefore must charge higher commissions to pay the bills and keep the doors open, they rely on you to pay their expenses and bills.

Zillow is a Home Buying Site – False.

Zillow is a marketing site, less than 5% of the viewers of homes on Zillow are qualified buyers, approximately 80% of the homes you see listed on Zillow were initiated by an MLS listing and were automatically pushed out to Zillow.

Real Estate Listing Myths

Joseph Walter Realty

If you have a question about buying or selling your home, please reach out to Joseph Walter Realty at 248-294-7849 or via email: info@josephwalterrealty.com 

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

 

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Pre-Qualification and Pre-Approval

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Lender Letters

When you are selling your home For Sale by Owner or even with an agent, you’ll need to understand what kind of approval is provided with an offer. Many people get pre-qualification and pre-approval mixed up but they are entirely different as to how secure their financing is.

Always inspect lender letters carefully

The mortgage industry often times provide relaxed letters of qualification or approval for clients who may or may not be able to close on the house. 

We will look at pre-qualifications and pre-approvals further below.

Pre-Qualification

What is a pre-qualification Letter

Pre-Qualifications are lender letters based on estimates of a buyer’s overall financial situation.

Estimates on debt, income, and assets are provided to the bank or lender. The lender then reviews everything and gives a price range of how much the borrower can expect to receive.

These can be done online or directly with lender. Furthermore, they are typically free to complete.

How is it Different than a pre-approval?

Pre-qualification is quick, usually taking just one to three days to get a letter. Keep in mind that loan pre-qualification does not include an analysis of credit reports or an in-depth look at the borrower’s ability to purchase a home.

The lender in a pre-qualification usually does not receive any documentation. The potential borrower is verbally providing an idea of who they are financially.

A pre-qualified buyer does not carry the same weight as a pre-approved buyer. As a Realtor, I tend to stay away from pre-qualified letters for offers and request that the borrower go back and get a full pre-approval.

Pre-Approval

What Is a Pre-Approval Letter? 

A pre-approval is an offer (but not a commitment) to lend a specific amount, valid for 90 days.

Getting a pre-approval involves extra steps for the buyer, but it further ensures a borrower can close a deal.

This type of letter is usually based on firm financial records. Bank statements, W-2, 1099, tax returns, investment accounts or credit scores are generally used.

The borrower must complete an official mortgage application to get pre-approved, and supply the lender with all the necessary documentation to perform an extensive credit and financial background check.

The lender will then offer a pre-approval up to a specified amount.

Lenders will provide a conditional commitment in writing for an exact loan amount, allowing borrowers to look for homes at or below that price level.

This puts borrowers at an advantage when dealing with a seller because they are one step closer to getting an actual mortgage.

Side note

Remember there are still conditions to be met on the mortgage side, even with a pre-approved letter.

You should always call the lender and have a brief discussion about the pre-approval letter.

Find out if there is anything major lacking from the file that could cause the loan to pause or be denied at later date.

Make sure they have reviewed credit, all documents and ask if they owe the lender anything.

Sellers

DO NOT BE AFRAID TO ASK QUESTIONS TO THE LENDER OR BUYERS AGENT!

Pre-Qualification and Pre-Approval

Service Coverage

If you have a question about buying or selling your home, please reach out to Joseph Walter Realtyat 248-294-7849 or via email: info@josephwalterrealty.com 

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.


How to Get On the MLS

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When Should I Start Title Work?

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Title Work

Why Do I Need a Title Company?

A title company is more than just a place to close your property. The role of a title company is to verify that the title to the real estate is legitimately given to the home buyer. Each state has specific laws and regulations when it comes to how your property is closed and who is part of the process. You will want to call a local title company or real estate lawyer to find out specifics in your state.

When Should I Start Title Work?

The question of when to order title work is an easy one:

As soon as you decide to sell.

What to Expect During the Title Process

In the real estate industry, there are many moving pieces involved in every transaction.  plenty of paperwork,  many hands touching things associated with your property from the title company to the mortgage company to other city and state agencies. Mistakes will happen and these mistakes can cause delays or cause deals to fall apart.

Your title report is like the credit report for your property. You want it as clean as possible and only things you know and have permitted attached to it. CLEAN and MARKETABLE TITLE can save you time and make your home sale smooth and easy.

Common things to look for when you get your title ordered

  • Liens  if you have taken a mortgage or other financing on the property

  • Liens – are there any liens you do not recognize

  • Taxes – are there any past due taxes owed

  • If you have paid taxes, you can just provide proof to title company to clear this

  • Ownership – If the title is in the seller’s name

Closing

If there are errors on the closing package you will need to work with the title company in order to clear the title error.

Sometimes you will bring in the previous title company (whom you used to purchase originally) for flags that should have been cleared before.

If there are issues to clear, the title company will be able to guide you as to what is needed to clean up the issues.

The title company knows their business, so take their advice. Lawyers can be expensive, but a good team can help guide you, and save you money.

 

List Your Property

Service Coverage

Joseph Walter Realty

 

If you have a question about buying or selling your home, please reach out to Joseph Walter Realty at 248-294-7849 or via email: info@josephwalterrealty.com 

 

Thank you,

Scott Fader and Gary Brincat
Joseph Walter Realty

Joseph Walter Realty is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

When Should I Start Title Work?

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