CNNMoney.com had an article entitled 5 new rules for home buyers. (Click Here For The Story) I found it to be a thoughtful article with some good motivation for buying a home in today's market and some cautionary thoughts
I was surprised how much thought went into the section on "You can't time the bottom." Most writers give a bunch of fluff with a bit of content. Amanda Gengler, the author, gave strong commentary advising people to pace themselves, drive a hard bargain with the seller and to be mindful to sell your home first as it could be on the market for a long time.
Her 4th rule has great value as well. She titles it: Don't buy cheap; buy good schools. The interesting point here is why she advises buying homes in areas with good schools. It isn't for the schools, it is for what the schools represent... enduring quality of the neighborhood.
We often caution potential buyers to be less sensitive to the price and more interested in the neighborhood. Quality neighborhoods hold their value better than sub-par communities. I'd add that buyers should be looking at location within a community as well. An interior lot or a home with a view has intrinsic value that when added to a good neighborhood add up to even more benefit. I especially like homes that have rare, yet popular features such as views, golf course lot, and such.
The last rule hits home for my brother Ron and me. Rule 5: Make sure your agent has your interest at heart. Make sure your agent is looking out for your interests only. Showing you their own listings, generally, does not serve the buyer. The agent will reap greater financial rewards because he or she has the potential of receiving a larger commission. However, agency laws prohibit the agent from providing the same level of counsel when representing both sides of a transaction as he or she would if representing only one party. In other words, the agent can not work solely on your behalf. He or she will act as an intermediary and can not be a strong advocate for either party.
The Urban Team does not do dual agency (working for both the buyer and seller) because we feel each side of a real estate transaction deserves full representation. Make sure your agent has your best interests at heart, not their commission. (I bet I get a few hate mail letters over this one... it's a hot issue and our position is not the most popular one among our peers.)
That's it for this post. Hope you have a great weekend.
Gene Urban and Ron Urban
The Urban Team
