Thinking of buying or selling a home? Starting and operating a small business of your own? Maybe you need a little help with personal motivation or computer technology… If so, you may find this column useful over time because we’ll discuss ways you can save time and money, protect your legal and financial interests, and deal with on a more level playing field with industry players to help you avoid costly mistakes made by so many people. Let’s face it, it’s a complex world and you operate from a position of knowledge and insight or from guesswork and blind trust. Money Matters is designed to help eliminate blinders. Knowledge is power, right? We believe that applied knowledge is powerful.

To jumpstart this column, we decided to throw in some tips for home buyers and sellers before real estate season begins. You may want to clip this article and save it for safekeeping. Buying or selling a home is the biggest investment of a lifetime for most people…it’s a BIG business deal made up of people, emotions, contracts and cash…all the ingredients for legal and financial pain if he doesn’t know what you’re doing (and most people don’t).

1. Buyers: Realtors legally represent sellers, NOT buyers…their job is to get the highest possible price for the property. They are not “your agent” and what you tell them can be used against you. Caveat Emptor is legalese meaning “buyer beware”…

2. Buyers: Avoid giving more than $100.00 when writing an offer to buy a home. This way, if you can’t complete a transaction, you have less money at risk. Large bona fide deposits DO NOT guarantee that you will get financing. Why risk your money?

3. Buyers: Arrange your home financing first, BEFORE you search for a home. Doing so gives you the same power as a cash buyer. You can use your financial prequalification to SAVE THOUSANDS when you buy a home if you are a smart negotiator.

4. Buyers: When signing an offer to purchase, be sure to write “subject to buyer’s attorney approval” above your signature. These 5 magic words (known as the weasel clause) can get you out of a bad deal if your lawyer doesn’t approve… you (weasel) can get you out of a bad deal…

5. Buyers: remember; An offer to buy becomes a legally binding contract when it is accepted by the seller. Fully understand the legal details before signing ANY contract or document.

6. Sellers – Avoid signing long-term listing agreements with just any real estate agent. Keep quote contracts limited to 90-day increments so you can review sales performance.

7. Sellers: Avoid signing a listing contract with part-time agents. Use only full-time agents to increase your chances of the most professional representation.

8. Sellers: Interview several agents before signing a listing contract. Make sure the “potential sale prices” you are quoted are accurate. Many agents will quote high sales prices just to get the listing contract. There is a saying in the real estate business “if it doesn’t list, it doesn’t last”…many agents will do and say almost anything to get you to sign a long-term listing contract. (See tip-6)

9. Sellers: Avoid signing purchase offers with unqualified buyers. Doing so will take your property off the market while you wait to find out you’re dealing with a dud.

10. Sellers – Make sure your agent presents you with a detailed marketing plan detailing the sales activities that will take place during the listing agreement.

If you are interested in learning more about Smart Books, please visit us online at http://www.smart67.com

Copyright © 2005

James W. Hart, I.V.

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