Election is over, strong real estate market is not

By Matt Trudel

The election is complete, and another interesting thing happened in November. The Feds lowered the federal funds target range by 25 basis points to 4.5 to 4.75 percent.

Many analysts believe that at the next Fed meeting on Dec. 17 and Dec. 18, we will see another rate drop of .25 percent. This would continue to remain on track with the Feds plan to get interest rates down next year. Lower rates give buyers more purchasing power because it allows them to borrow more money while keeping the payment the same. Buyers need to start planning now so they are ready to go the first of the year.

Get your finances in order ahead of time so you are prepared when it comes time to make an offer when your dream home hits the market. You should have a savings account of some type set up for your housing purchase. You will need funds for inspections, tests, and closing costs. This can be more than most people realize. These are all things your buyer’s agent should be going over with you.

If you do not have or have not selected a real estate agent to work with as your buyer’s agent, that is the first thing you should be doing. There is a lot to consider when choosing a realtor to work with on what is one of the bigger financial decisions people have to make.

Find a REALTOR with plenty of experience. This will pay off in many ways and make the whole process smoother and less stressful. Negotiating price is just a small part of the transaction and not the most important part often when successfully putting a deal together.

Talk with a few realtors and ask them about previous deals and people they have worked with. I would also ask them about their policy if you decide that it isn’t working out great, and you want to change realtors. Not all agents charge the same percentage and that varies from office to office.

There are also the new real estate regulations that I wrote about in my last article which almost makes it mandatory for buyers to have a buyer’s agent prior to viewing a home that is listed. Realtors are basically not allowed to show other agencies listings unless they have a signed buyer’s agreement.

Remember that savings account we mentioned for closing costs. Part of your closing costs will be the commission that your buyer’s agent is going to be paid. It may be able to be negotiated that the funds will come from the seller’s proceeds, but sometimes the seller is only willing to pay a portion of what is owed. This is all information that you should be told upfront before looking at any property so you can make better informed decisions. This is also something you should discuss when interviewing prospective Realtors who want to represent you as your buyer’s agent.

Like I said before, not all agencies charge the same percentage when representing buyers. Also, if the seller is offering to pay out a higher percentage of commission than what you negotiated with your buyer’s agent, shouldn’t you receive those extra funds toward your closing costs?

I do feel we are going to have another strong real estate market next year and probably for at least two years. It will be very competitive for buyers and likely faced with many multiple offer situations. This is another area that having a buyer’s agent with years of experience in dealing with these situations can make all difference between a successful transaction, or another missed opportunity for you. This is an important decision, and you should not worry about hurting a friend or family member’s feelings because you made the choice to work with another realtor. You need to make the best decision for yourself.

This article was written by Matthew Trudel, Broker/Owner of Five Star Realty, Windham 207-939-6971Windham. 207-939-6971. <