Lifestyles over 50 Finance & Money
“In almost 40 years in real estate one of the most important things that I have learned is to have clear communication with clients and not to assume that we are all speaking the same language.” Below are the five real estate terms that Elissa reviews with her clients to ensure clear communication and the best possible outcome:
Good Faith Estimate
A frequent stress point where clients get caught in the crosshairs of the sometimes inevitable is the Good Faith Estimate. Most clients see this number as what they’ll need to close. However, make sure you pay attention to the last word in Good Faith Estimate. These “estimates” can vary drastically when it comes to closing time. You should probably save a bit more to make sure the deal doesn’t fall apart at the end of the road.
A preapproval is just that — a preapproval. Too often clients think that their preapproval is as good as money in hand. And yes, it does give you permission to shop, but you need to be aware that changes in your habits or the market can affect your ability to close. Yes, most people (hopefully) know not to buy a car while shopping for a home. You need to understand that you don’t have the loan until you have closed, and that means both being conservative with your credit and time.
On the seller’s side, the most common catchphrase that can trip you up is the almighty “comp.” A “comp” is a comparable property; and yes, they are helpful when it comes to pricing. However, you need to understand the difference between the “comp” and a comparative market analysis (CMA). Your CMA takes into account a number of factors, and if your agent does not take the time to explain them properly, you might lean on sites like Trulia or Google as an authority for pricing advice. When I recommend a pricing strategy, I show you what road I traveled to get there. We are much more likely to reach an agreement on price if you see the process and how it affects price.
MLS - Multi Listing Service
To many people the MLS is a magic place where properties go to get sold. But there is much, much more that goes into marketing. I make sure you understand what a multiple listing service is. I show you how it fits into an overall marketing plan. This has two major benefits. First, it gives you a good idea as to your property’s value. Second, you get to see all of the resources and tools I use to move your home.
The fact is that most people hire an agent without having a clue as to what agents actually do. There’s a lot of conversation around whether or not agents earn their commissions. That is why I show you things like the marketing plan, positive recommendations and reviews, and other resources that break down what I do to ensure a satisfactory outcome.
Elissa Clausnitzer, SRS is a licensed Realtor with Weichert Realtors and has over 30 years of experience in real estate. Elissa specializes in helping boomers and seniors achieve their goals in their next step in life. Call her at 610-573-0386.