Using the builders agent, is this in your best interest?


The decision has been made, you are not only going to buy a new home, you have decided to build. In every model you went through, there was an agent there and you found one that you really like. Being the expert in real estate you are, you decide that you will use the builders agent. Along with convenience, many people think they will get the agent to cut commission because they are working both sides of the transaction, their interests will be protected and the service will be of the utmost quality.

Are you really sure you know what you are doing? What most people don’t realized is the agent that represents the builder has a contract with that builder and their FIRST duty of responsibility in the transaction will be to the builder. The builders agent still has a fiduciary responsibility to protect the buyers interests and has to be careful what they tell the builder about the potential buyer, but any pertinent facts the buyer tells the agent, that agent may tell the builder, such as qualification of dollar amount, time frames, and any other information that may lead the builder to think twice about working with a particular buyer. For instance, if there are two parties talking with the builders agent and they are both thinking about building on a particular piece of land and both parties have informed the builders agent what they plan to offer, the builders agent may tell the builder the prices or information they know. This could work against the buyer in obtaining the piece of land they would like to build on.

Some buyers think that if they work with the builders agent, they will get a reduced commission or the dollars will be applied as a credit to the build. This could not be more incorrect. The agent working for the builder has already signed a right to represent contract with that builder that will protect the commission on the sell side. What people don’t realize is that the property is listed on the MLS with a pre negotiated pay out for the buyer agents side of the sale. The agent may cut some of this pre-negotiated commission, but many will not completely cut their pay they are to receive for the buyers side. The builder, by law, can not issue the buyer a kick back of any sort as it is against the law. The only persons in the transaction that can receive payment from the purchase is persons that are licensed by the state with an active license and all dollars or funds MUST be disclosed on the HUD at closing.

So when you are thinking about building, make sure your interests are protected as strongly as the builder you are working with and have your own representation. Your agent, once working under a buyers representation contract signed by both you and the agent, is required to work for your best interests. This representation should start from the moment you start to consider working with a builder, to the platting of the home on the land, the selections, the periodic walk through you will want to do, negotiations, closing and all in all making sure that you get the home you truly want, not the one you have to settle for.

Your Minnesota Real Estate agent providing quality service whether buying, selling or relocating. Experienced in short sale & foreclosures. Learn more at http://www.VickieGylling.com.

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Short Sale or Foreclosure, What Should “I” Do?


TV, newspaper, internet wherever you turn you are hearing about this topic everywhere.  Those facing a short sale or foreclosure know it can be very stressful and often wonder where to turn.  I am here to tell you that “YES” it can be stressful, but once you have spoken with a qualified person that can give you direction, answer your questions and help you to make those first steps, this stressful feeling will subside and you will wonder why you waited so long to ask the question.  What most people don’t know right now, if you were to start asking around, you would be surprised at how many people are in the same situation you are in.  Why are we so afraid to talk with each other about our difficulties…remember when the teacher always said to us, the only stupid question is the one that was not asked?  Shouldn’t that apply in this situation also?

The worst thing you could have to tell your spouse or partner is that you may be on the verge of loosing your home.  Now what, how long will the process take, where do we go from here & most impotantly…where will we live & how long with this affect our credit scores.  These are more than just scary thought.  Depending on the action you have to take; short sale vs. foreclosure both will impact your credit scores but in two very different ways.

Short Sale: May stay on your record for 3-4 years.  How it affects your credit score is based on each situation individually as each of our credit scores are different to begin with.  After the appropriate number of years, you may see this come off your credit report.  If you have a second mortgage, this lender has up to 7 years to come after you for the deficient amount owed on that loan even once the home is sold.

Foreclosure: This will stay on your credit report FOREVER! It may affect the terms of any loan or credit card you try to obtain in the future. 

Neither of these procedures should be taken lightly, however, working with a qualified real estate agent will help guide you through the process and be able to direct you to the correct persons that you may need to speak with in order to make the correct decision for you.  When speaking with a Real Estate agent about how you should proceed, it is important to know that this person can not ethically give you any legal or financial advise on the decision you might need to make.  It is always in your best interest to speak with the appropriate persons for direction in these matters.  Your Real Estate agent should also not pressure you to make any impulse decisions on what you want to do.  Since this decision is going to affect you for many years if not a lifetime, take the time to make the decisions that feel best for you, your spouse and most definitely your family.

The other thing to remember is each situation is different and how the bank works with your agent will be different in each case.  So if you see an agent promoting themselves as an experienced or expert in either of these situations, remember that these designations are self-proclaimed and there is NO government or agency that gives these titles to an agent.

THE SPIRITS TO MOVE are here to assist you in all your real estate needs & questions.  Leave us a question if you have one and we will get back with a private response to you.  We are here to help move you in a professional & confidential manner.

How is the Real Estate Market Looking


As we fast approach the end of the first week of 2011, many people are wondering what is going on with the real estate market.  Especially if you have your home listed on the market now.

Well, here it is in a nutshell. 

Records indicated that for the week of Dec. 25, 2010 sales were down 3.3% based on the same time in 2009.  There were roughly 379 purchase agreements signed during that week as well.  There have been 657 new homes listed for the time frame of Dec. 25, 2010 which is up 43.7% from 2009. 

There are currently about 21,161 active homes on the market.  This number is up 11.5% from the same week in 2009.

What does this mean for persons trying to sell a home?

A.) You MUST have an agent that is working with your best interest & motivation.

B.) Your home must look it’s best INSIDE & OUT!  Get rid of the clutter, keep the walk ways cleared of snow & ice, limit the orders in the home.

C.) Since it’s winter, clear the summer clothes out of the closets! Make the closet space look as large as possible.

D.) Make sure your photos on the internet are current.  If it’s wintertime, make sure your photos reflect this.  You can have other seasons pictured, but make sure you have some of the current season.

E.) Work with the buyers agents when it comes to showings! Remember, when you get a call, you have a possible buyer! Let them into your home at the time they want.  They will be looking at more than one home and if they can’t get into your home at their desired time, they may not make it back at a time that conveniences you & your family or at all.

F.) PRICE IT RIGHT! Although, you have a price in mind, remember, you hired an agent to help you and they are the trained experts in this area.  They are going to do market analysis, watch what is happening on a daily basis, and work to get you the top dollar for your property. 

When THE SPIRITS TO MOVE hit, remember numbers are what count, so watch them, study them and be on the right side.