According to a new article from Zillow.com, nearly half of prospective home buyers admit they don't understand the details of a mortgage and that number increases to 57% when we talk about how adjustable rate mortgages (ARM) work. In addition, 1/3rd of prospective home buyers understand that lender fees can be negotiated and may end up paying too much.
I think many buyers are affraid to ask questions, in fear they may open the door for a salesperson to pounce on them, and unfortunately in some cases that may be true, but most professionals want to explain the details of the products and processes to you, to help you make an informed decision and to win your business.
In this changing market we've experienced over the past 6 years, many of the standard rules have changed as well, and now more than ever you need to seek the advice of a professional who can guide you thru the process and or point you to other professionals that they know and trust to help and guide you with the decisions you'll need to make.
What I often times find, is that we put too much faith in what we learn on the internet and charge ahead based on that information. Unfortunately, buyers and sellers end up making decisions on partial information, leaving out critical pieces that may dramatically influence the situation and cost them a lot of money.
In real estate, the real estate professional doesn't get paid until you've successfully closed on a sale. That can be a good or a bad situation, depending on the real estate associate and their level of professionalism and ethical standards. A good real estate professional will put your needs 1st, protecting your interests, and by doing so hope to win your future business and referrals as well.
Bottom line; work with someone you trust, and if you don't know someone you trust,ask friends and family who they trust. This will help ensure that you have a positive experience and don't get hit with unexpected expenses.
My business has been built on developing relationships with my clients, getting to know them and their needs 1st, to best serve them. By taking this approach, 70% of my business each year comes from repeat or referral business, proving that my clients and customers trust me enough to send their friends and family to work with me.
If you or someone you know has questions about any aspect of real estate, please don't hesitate to contact me. I'll be happy to answer your questions and help avoid the possible pitfalls your situation may face.