Let's say you've retained an agent, that your home is on the market and you receive an the opportunity to purchase your home. That sounds fantastic, doesn't it? Maybe, but it's not. When the offer is accepted according to the language of the offer, you're taking your home off the market until you decide whether the buyer is able to, actually, purchase the property. You'd like to know if there has been (and frequently is) some type of financial prequalification of buyers by the agent before the offer is made and accepted. However, they aren't mortgage brokers and often buyers who appear to be able to borrow but aren't.

When I was a loan officer I saw nice people dressed nice in nice cars with decent down payments , but they could not obtain a mortgage. Why? Many reasons can be cited, including but not just bankruptcy, legal actions, inadequate time at work and over extended credit or divorce process, etc. So, people that "look like they could do a deal" might not. And there you are...with your property being removed from the market for up to 30 or more days for the reason that the buyer cannot buy.

Simply put, there are two types of credit reports: an in file report and a mortgage credit file. In-files are an instant report, while mortgage credit reports are extensive and can identify things that an in-file could miss. The point is, sometimes it is discovered that things have been discovered about buyers. This is especially true for "chain deals" where a seller is "buying" and needs to sell to buy. Like a chain, this is as secure as its weakest link. Agents are aware of this . However, like I have previously stated, sometimes agents throw proposals at the wall hoping that they'll be accepted.

What should you do? Well, it all depends. There are two kinds of sellers and buyers around the world: The elite few and the rest of us. If you are selling a property with a price tag designed for an upper class society, then you're likely working with a top performing agent, not a novice experienced, inexperienced or part-time agent. If that is the case, you should not read this article. If you fall within the "everybody else" category, then you might want to take a look at the following:

In addition, you should use a written safeguard clause in the event that you accept an request from a prospective buyer.

Your goal is to determine if the prospective home buyer has a green light, yellow lights or a red light for financing . A qualified loan officer can determine this information swiftly during the loan application process.

What you want the buyer to do is be accepted by a loan representative of a reliable lending organization for quick financing and to have that tentative qualification for loans in writing before you take your home off the market. The attorney you choose to use should examine the offer to purchase and alter it to make sure that the buyer is granted the loan approval within a brief timeframe from the lender. I am not an attorney nor am I giving legal advice--I would suggest a common-sense solution to protect yourself. A quick solution, as an example, is to accept the offer of purchase by incorporating a protection clause such as:

"Acceptance of this offer subject to buyer written qualification for loan approval within (48) hours"

If you or your representative receive an official notice of pre-qualification in writing and preliminary loan approval from a lender and the buyer looks as if it's a clear sign of approval for home financing, you're basically in a good position. If not, you have choices...

Why would a seller decide to do this? What if a potential buyer decided to bid on the property couple of days after? What if a qualified buyer showed up within one week, or two? What would happen if any of these two scenarios took place and your property was locked in a knot, put on the market for an unqualified borrower and you weren't able to discover for 30 days that you were dealing with fraud? This is why you must discuss with your attorney what language you should apply in your local area.

A home buyer should be aware of. Although loan officers in banks tend to have a salary and loan officers at mortgage brokerage companies are most frequently not. They are paid when the real estate deal concludes. Mortgage brokers are generally able to take on more work to get the borrower to be financed since they don't get paid until they've closed the deal. If I were selling a home, and the borrower was a marginal buyer, I'd rather to have the buyer sign up with an honest mortgage company, rather than. bank, but that's me. It's something to take into consideration as a seller. What is the location of the buyer planning to finance?

Here's a freebie to assist you--a totally free EBook Report: 101 Tips For Home-buyers, Sellers And Money Borrowers which gives you 101 strategies to safeguard yourself prior to and during an actual estate transaction. It's in our freebie section on our website . the download is available at your convenience. An Ezine Articles exclusive! Until next time...

Copyright (c) 2006

James W. Hart, IV

All Rights reserved

You've decided to pursue a desire and venture into selling real estate. In the beginning you could feel at times confused. It is possible to ease this anxiety by taking a break and writing out your goals. They can be long term and short term, both. Perhaps you have daily goals you set for yourself.

If you're already involved in real estate, begin your goal-setting session by reviewing the current state of your business. Estimate the income you will earn for each property through averaging your sales for the previous year. If you go back any further, it will result in a skew because the market was soft.

Consider how much profit you'd like to make from your sales. Do you intend to spend it on vacations and travel? Are you saving money for school for your children? Are you looking to retire sooner? Perhaps you want to earn a living. Whatever your reason follow that as your guide.

You should compare your income goal to your actual income for the property you have calculated. If they're fairly close then your goal-setting sessions will be focused on refining the way you conduct yourself. If you're a long way apart, or you are just beginning the plan you create will be more precise. You'll need to identify your audience, locating your clients, and calculating the commission rate.

If you're earning less than you should to make a profit, consider selling more, or selling the more expensive houses. Once you've reached the expensive homes then you can list fewer homes, but still earn a decent income.

Particularly when you are fresh to your field of work, you will need to be aware of both your strengths as well as your weaknesses. It could be a matter of personality or it's time to upgrade your technology. Perhaps your strategy for marketing needs revamping. Also, you may want to make the effort of networking at community events. Make sure to remember that not every meeting will result in a sale.

There are a number of great books on how to discover https://www.storeboard.com/blogs/general/10-things-steve-jobs-can-t... your strengths and exploit them to your highest advantage. It's beneficial to return to them for a refresher from time to time. While we are living our lives, our focuses shift, and understanding how to change and follow the flow will help us to maximize our performance.

Make sure to check in every so often to assess your progress. Don't be afraid to make modifications regarding your strategies. The market could shift or you may acquire the services of a business partner. These can drastically alter your business plan. You might discover yourself feeling like you're cruising, and it's time to establish new goals and raise the bar.

You've probably written your goals down, right? This will make the reviewing procedure much simpler. Just take away the page of goals and then review it. Goals aren't a time capsulethat was constructed and stored for 30 years. They are actively pursuing. They must also be built on the elements you have control over. If you try to set goals based on a projection that employment figures will suddenly improve will only lead to frustration.

No matter where you are in the realm of real estate as a novice or seasoned veteran, you can benefit by a goal-setting session. If you take the time to do this for yourself, you'll be thankful for it.