Why you’re home selling price never works out the way you plan?

Selling your house for a right price is an uphill task, most of the seller’s decide the selling price by themselves. However they end up selling at far less than what they have in mind.This happens due to fact that selling house at right price is an art. It requires methodical approach and certain skills. Overpricing is one of the key reasons why may DIY sellers fail to sell their house.

Only experienced and professional listing agents like Dream Equities possess such methodical approach and skills. Although almost 90% of the sellers hire a listing agent, they make a common mistake of hiring a listing agent that promises to sell your house at highest price.

 It is only natural that a seller wants maximum return on his biggest investment however overpriced properties sit on pending sales list way too long. Dream Equity has to turn many such clients insisting on selling their property at overpriced rate because it is impossible to sell overpriced homes even in most volatile housing market. A good listing agent is not particularly fond of long pending sales list.

Listing agents that promise to sell your home at highest price are not just fooling you but they are fooling themselves too.  No buyer will have a second glance at your house if it’s overpriced. Why most of the real estate agents promise you to sell your house at the highest price? Simple, many listing agents will distort truth to get listings. However there are listing agents like Dream Equities that will tell you the right price for your property with supporting documents but they are a rare breed.

That said, it is better to ask your agent to support the suggested list price. Alternatively you can also view listings in same categories from different listing agents and take a pick at comparable sales, pending sales and active sales before selecting a listing agent.

The best time for an offer is within the first 30 days on market. If the home is priced right, you'll get an offer within 30 days; this is the best way to know if your price is right.Most of Dream Equity’s clients get the first offer within 30 days. Overpriced house will not get any showings at all so you will reduce your price, leaving everyone wondering what's wrong with your house.

How Much Do Buyers And Sellers Pay In Closing Costs?

If you are a first time home buyer you might imagine sitting at a round table meeting where at the end of the escrow closing you will be handed the list of expenses required to close the deal. To tell you the truth people prefer to close deals virtually on phone or video conference. Still people do meet around table at closing.

However in today’s fiercely competitive world housing brokerage firms like Dream Equities go out of their way to provide their clients with all the information about home buying. So it is unlikely that a buyer will show up at a closing meeting without doing his homework.

Closing costs are the overhead costs other than the cost of the real estate. Both buyer and seller have to pay overhead costs however buyers have more costs but they pay less than sellers, Confused? It all right at the end of reading this post you won’t be.

Although both buyers and sellers have to pay closing costs, buyers have more line item expenses than sellers. The biggest factor contributing to closing costs is the home loan, since buyers take home loans they have to pay the charges stemming from loan.

The chances are experienced brokerage firms like Dream Equities will know the lender, so they will tell you to get the Good Faith Estimate (GFE) and a Truth-in-Lending statement from your lender. Some buyers even use Truth-in-Lending statement to shop for different lenders which is actually a pretty good idea.

Aside from the costs of getting a loan or buying a home, some expenses, such as property taxes or homeowners association dues, are pro-rated and paid at the time of closing.For example if you buy a house and you close at the end of the property tax period you will have to pay the balance of taxes upfront. Same goes for prepaid interest home loan.

The sellers though have fewer line items, pay the biggest cost of i.e. the real estate commission. Since it is the percentage of sale price it’s the biggest closing cost. The real estate commission is split by buyer’s broker and seller’s broker.

If you are a first time buyer, you should hire a broker like Dream Equities who are not just brokers but real estate experts. They will guide you properly. 

Real Estate Agent Commission - How It Works?

Real estate sale and/or purchase procedure in California is almost same as that of in any other states. There are two basic kinds of real estate agents those who work independently and those who work together forming a real estate agency. These are further divided into three types Buyer’s agent, Seller’s agent and real estate agencies like Dream Equities who work for both buyer and seller.

Almost 90% of the real estate buyers and sellers hire a real estate agent who charges a commission. How much is the commission? There are no specific rules, in other words real estate commission is negotiable. You can set the terms in your sales contract. The bigger and better real estate agencies like Dream Equities may charge you more than an individual agent but them also provide multiple services under one roof. That said, you should remember two most important points about commission

1.    Sales Deeds Include Commission

The rule of thumb is that commission should be included in the sales price. So if the sales price (also called purchase price) is $400,000 and a real estate agency like Dream Equities charges say 5% commission then the net proceedings (barring other closing costs) are $380,000.

Usually the seller pays for the commission however seller and buyer can decide to split the commission or a seller may ask the buyer to assume full amount.

2.    The Commission Is Paid Directly To Only Brokers

A rule of thumb applied all over US. A real estate agent must work under a real estate broker or a brokerage firm. Agents are not allowed to work independently; they have to work under a broker. A broker or brokerage firm will list you house for sales. Both buyer’s agent and seller’s agent work under their respective brokerages. Dream Equities is a real estate agency with experienced brokers on pay roll.

Brokers set the commission they charge for houses sold through their brokerage. Traditionally, the commission is 5-8 percent of the sales price, but again, that amount is negotiable.That said there is no rule on how a listing broker should split his commission with buyer’s broker. They can decide to split the commission 70-30 if they like it. Real estate agents will get their commission from respective brokers which may vary from 50% to 75%.

4 Common Mistakes Homebuyers Can Avoid

Buying a house is a very demanding process. Although you can hire various advisers like real estate agents, lawyers, attorneys and mortgage brokers you have to do a lot of work by yourself. Get the most out of your money with these home buying tips.

1.    Avoid Border Dispute

Even though you can check the land records in the county’s records department it is better to carry out a professional survey of the property you are buying. Dream Equities is one of the leading real estate firms in California who insists that it’s clients should get a survey done on the property, it’s the best way to know what you are buying. Knowing precisely where your property lines are may save you from a potential dispute with your neighbors. Also, your property tax is likely based on how much property you have, so it is best to have an accurate map drawn up. Further it will prove helpful when you go for resale.

2.    Timing Property Market is a Myth

The property market is cyclic, it goes up and then it goes down. Trying to anticipate housing market is simply impossible, even expert firms like Dream Equities face difficulties in doing so. So don’t obsess with trying to time the market, chances are you will lose precious time because there is no best time to buy a house.

3.    Sleeper Costs Can Slap Your Budget

Sleeper cost is the difference between renting and home ownership. Buying a property comes with baggage, you will need to pay property tax, car tax, parking tax, home owner association tax/fee, repairs and maintenance and utilities. New home buyers mostly think only about their mortgage payment, you need to plan a separate budget for sleeper costs. If you don’t, you will lose your house.

4.    Don’t Be Emotional

There is no such thing as a perfect house so stop looking for one. The truth is you can only try to get the best out of your budget so select the best property from your list that suits your budget. Dream Equities always advises its clients not to get emotionally involved in a property while buying it. You need to go with your instincts and not your emotions because only instincts can tell you if you are getting a great house for good value.    

The basics for foreigners buying real estate in California

California has attracted foreign real estate investors for years. Buying property in California is a status symbol for many foreigners. Buying a real estate in a different country can be daunting. While this post will help you get started it’s not a substitute for the expert advice of attorneys, real estate agents, mortgage brokers, tax advisers and lawyers.The two basic points which foreign buyers need to remember are -

Intended Use of Property

This is the most fundamental question. You need to decide how you will use the property once you have bought it. Go through different case scenarios like, will it be a long term residence?  Are you going to use it for while on a business trip? Are you going to move in with your family? Is it just a vacation home which you intend to rent? Or is it simply an investment?

Real estate agencies like dream equities deal in all types of commercial, residential properties and land development. Based on your primary use for your property your real estate agent will be able to shortlist the best property that serves your purpose in short time.

 Hire a Local Real Estate Agency

You can hire a single real estate agent who works independently or a group of agents who work together. Although they are professionals they have limited resources at their disposal. But real estate agency like dream equities has many experienced personnel on payroll with unlimited resources at their disposal. Bigger agencies can provide you multiple services like mortgage broker, legal adviser, insurance agent and housing survey agent under one roof at a flat price.

If you are not fluent in English, or prefer speaking in your native language, choose agents who are conversant in your native language. Although you can get translated copies of standard real estate documents, it is more likely that you will have to sign the English documents at the time of closing deal. Bigger agencies like dream equities usually have proficiently multilingual staff.

These two important points form the foundation of your real estate quest in California. You can talk to different real estate consultants to learn about the way California real estate market works. I strongly recommend to hire a licenced and experienced real estate agency like dream equities that is based in California itself. 

4 Important Tips on Buying a House in California

Though almost all states in US have somewhat same real estate buying procedure the state of California does few things differently. Buying a house in the golden state is easy but you need to know some things before purchasing a property.Dream Equities will be more than happy to help you.

Build a Solid Credit Profile

Most important tip is not to move your money six months prior to buying a home. If you move your money around it will be seen as a sign of bad credit profile. Also as long as possible do not amass huge credit card debt. If you are a foreigner or from other state you need to open a bank account or credit card account in California to start building a solid credit profile.

Preapproval for Your Home Loan

Getting pre qualified and pre approved for your home loan are two different things. Anyone can be pre-qualified for a home loan but getting pre-approved means that creditor has taken a thorough look at your credit profile and approved you for a loan amount. This makes it easier for you to get the idea of your budget.

In California getting pre-approved for your home loan is considered a vital point and any real estate agency like Dream Equities will not be ready to work with you unless you are pre-approved. 

Bigger is Not Better

Whenever some family engages Dream Equities as their buying agent the first thing we tell them is not to buy a big house even if it’s within your budget. The reason is largest house doesn’t appeal majority of buyers that puts you on disadvantage when you go for re-sale. Sometimes it’s best to buy the worst house on the block, because it usually trades for more than the big house.

Getting a Survey

We at Dream Equities always recommend our clients to get a survey on your property, this will surely cost you around $400or less maybe, but it will save thousands in the end. A housing survey can reveal many points that a common eye will miss. A professional housing survey agent will tell you the exact pros and cons of the property before you decide to pay the earnest money deposit. This will leverage your position as a buyer. 

How to Purchase Real Estate in California?

The process to purchase home is basically similar in all the states. There is one slight difference in California home purchase process. Unlike in other state you are required to open an escrow and attorneys do not complete the home purchase transaction. Opening of escrow is usually done by the seller’s agent but if not your agent will do it for you the moment you select a house.

To complete the sale and purchase of home in California you need to hire a licensed real estate agent like dream equities. There are two types of licenses issued in general, one is for sale person and other for broker also called as agent. The sales person will always work under the broker or agent.

The real estate companies like dream equities are a group of brokers who work together. Such companies are generally better equipped compared to independent brokers. There are mainly three types of agents, sellers’ agent, buyer’s agent and dual agent. 

The first thing you need to do is get a buyer’s agent even before you start headhunting houses. The next important step is to get a pre approval on your home loan. This is important because it shows your seriousness and the agents will treat you with attention. Some real estate agencies like dream equities offer in-house consultation on getting a mortgage broker and preparing your credit report.

Once you have finalized a house you will have to make purchase offers in consultation with your agent. In California it is mandatory to make the purchase offer in writing. If you are buying the house in hotspot, be prepared for multiple purchase orders.

Once your offer is accepted you will be required to deposit your earnest money cheque. Do not ever make your earnest money cheque in the name of seller. You will get your earnest money back if your offer doesn’t go through. Rest of the process is basically similar to other states.

Make sure that you hire a qualified and experienced agent like dream equities. Discuss your doubts and concerns with your agent. If your offer is rejected, ask your agent to explain why and do not repeat those mistakes again. A qualified and experienced agent will work with you until the title and records department informs you that title has been transferred in your name. Once tittle comes through the property is yours unless your contract says otherwise. It’s time to change the locks.