In previous blog posts we have discussed the importance of your lender, your contractor, and the role of a HUD consultant in a renovation loan. In this article, we want to cover a few major tips when it comes to choosing your realtor. You realtor is an integral part of the transaction and it's extremely important that you choose one who is a master of the bullet points below.
1) They need to be an expert in the community.
This should go without saying, but it is even more important when it comes to having a plan to renovate. Before you can start any renovations, you first need to be able to identify the right home in the right location. Your realtor should be able to point us into the best neighborhoods that offer the best opportunities to renovate. Sometimes, these may be in the form of a traditional/normal sale, but other times it may be in the form of a probate sale, distressed sale, or a home that hasn't even hit the market yet.
2) Renovation experience.
Many agents have experience in renovating, flipping, and investing. Many agents are well versed in seeing opportunity that others may not, and building equity into a home. This expertise can be hugely advantageous to you. When it comes to a fixer upper, your real estate agent will help you see the final product before any one has picked up a hammer.
3) Expert Negotiator
Your real estate agent needs to know market trends, market activity, and should guide you as you prepare to make your offer. Your realtor will supply you with an analysis of comparable active and sold properties so that you can offer a price that makes sense. They will do their best to gain insight as to where your offer needs to be and what terms desirable in order to be the one offer selected. They should have a strong reputation in the community and be able to leverage their relationship to your advantage.
4) Crafting an offer.
There is a common misunderstanding that it will be more difficult to have your offer accepted. You need to be working with a real estate agent who will be able to make our renovation offer stand out. Obviously a strong purchase price is important. The terms of the offer will also play a role, and having your real estate agent convey to the seller that by choosing an offer using renovation financing they are helping to ensure that they won't be "nickled and dimed" in the negotiation. Having a real estate agent who can sell the strength of our offer is absolutely critical.
Use these 4 tips to pick an expert real estate agent to help you get your offer accepted.