Sellers closing costs are when a seller agrees to pay some of the costs of the closing. Also they can be called seller contributions. In the beginning this was a practice that started when the buyers did not have enough to cover the down payment and the closing costs. Today, it is being used somewhat as an incentive in a down market. The seller contributions are usually allowed as long as they do not exceed from 3 to 6 percent of the sale price of the home, depending on the type of loan.
Warning: Be very wary of people who aggressively try to buy a house for investment purposes. Although many legitimate real estate investors had a large amount of fraud “Stop Foreclosure” scams, and it is reasonable to be very careful.
A estate agent services is an expert in your area, or at least he should be. He can help you find a home that meets your needs for commuting, schooling, churches, shopping, and whatever else is on your list. He can do the legwork for you, pulling potential properties and providing them to you for consideration. Of course, with the Internet now readily available to homebuyers, this is not difficult for you to do on your own, but the National Association of Realtors does make it difficult for consumers to access the entire information on the Multiple Listing Service without the aid of a realtor.
Second, when working with buyers, listening is essential. You have to understand what your buyers are looking for. When you can keep the home buyer’s needs first and foremost in your mind, you will be more likely to provide the kind of service to them that they deserve and will applaud. Focus on each buyer individually and ask a lot of questions about what their needs really are, then listen to their answers.
One effective way of advertising your property for sale is to hold an open house. The goal of this activity is to gain a wider market for your home. What happens during an open house is the owner of the property makes his or her home open to the public. This then provides a good opportunity for interested buyers and real auctioneers to have a personal view of the entire house before making a decision.
Most good real estate brokers will collect your earnest money right up front and may even insist it is considered a “retainer” if you choose not to buy a house after they spend a specified amount of time with you. You may be asked to put down your earnest money before you even see a single home. This money is used for earnest money if you close on a home, but may even be used as a retainer fee for the broker or the real estate agent, if you choose not to purchase a home after taking up some of their time. Either way, your earnest money serves its function of paying for your home purchase or paying for your real estate services.
When you are in front of a prospect it is your time to make things happen; time for you to perform. I like to think that the person I am doing business with is paying for my lifestyle, my investments, my mortgage, and my kid’s tuition at private school. You get the idea. The top performers in sales have a knack to get what they want just as they know how to deal with rejection and position themselves to get one step closer to the sale.
Asking yourself these questions will help get you started in your real estate investment career, and keeping these answers in mind at all times will keep you from making costly mistakes as you buy and sell investment properties.