The need for a short sale often begins with a loan default. The lender or creditors may be willing to allow the property to be sold for less than the amount owed on the mortgage and accept that short amount as full payment of the debt.

You also might be interested in:

1. 6 Tips For Buying A Home In A Short Sale
2. How to buy a foreclosed home in Cleveland
3. New Home Affordable Foreclosure Alternatives Program Implemented

Offered at $125,000

7602 Theota Ave
Parma, Ohio 44129

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Neighborhood Information

You also might be interested in:

1. Home for sale in Elyria, Ohio: 289 Windward Dr
2. Price Reduction! Home for sale in Avon Lake, Ohio: 32812 Sorrento Lane
3. Price Reduction! Condo for sale in Fairview Park, Ohio: 19660 Lorain Rd

1. Be truthful on your mortgage application

You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.

2. Hold off on big purchases

Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan.

Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.

3. Keep your job

The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.

4. Meet contingencies

If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately.

5. Consider deadlines immovable

Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct.

Article From Houselogic.com, By: G. M. Filisko, Published 2010-03-30 11:40:08. G.M. Filisko is an attorney and award-winning writer who wanted a successful closing on a Wisconsin property so bad that she probably made her agent rethink going into real estate. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

You also might be interested in:

1. 7 Steps To Take Before You Buy A Home
2. Step By Step Guide to Buying a Home in Cleveland, Ohio
3. 7 Steps To A Stress-Free Home Closing

Wood siding is one of the most beautiful of all types of siding—and one of the most expensive. If you’d like to avoid repairs that could cost thousands of dollars, and you’d like to keep your clapboard, shingles, or board-and-batten lasting for decades, regular upkeep and maintenance is critical.

Finish, protect wood siding
Wood must be properly finished with a paint, stain, or clear sealer. Left unprotected, it’s susceptible to rot and decay caused by moisture. Of special concern is the fact that wood expands and contracts with normal changes in humidity and temperature. These fluctuations may cause paint finishes to chip and crack, and over time puts stress on caulked seams around windows, doors, and at corners. If the caulk separates and fails to keep out moisture, wood rot may develop. Even species of wood that have a natural resistance to rot, such as redwood, cypress, and cedar, may decay if not properly protected from the elements.

Paint comes in unlimited colors and can be changed at any time. A house with wood siding must be repainted at least every five years, or as soon as the paint finish begins to deteriorate. A DIY paint job requires about 60 hours of labor. A professional crew will paint a two-story, 2,300 sq. ft. house for $3,000-$5,000.

Stain is a good choice for wood because it allows the beauty of the grain to show through. Stain penetrates wood fibers and helps seal them against moisture; it’s also resistant to the cracking and chipping that affects paint. Because stain is a penetrating sealer—not a coating, like paint—it’s difficult to change the color of previously stained wood. Staining a house is less labor-intensive than painting because prep work is minimal. Expect to pay $2,000-$4,000 for a pro crew to stain a two-story, 2,300-sq. ft. house. Using a rented paint sprayer, a two-person DIY team can re-stain a two-story house in 4-5 days for about $500, including the stain.

Clear sealers prevent moisture damage and allow wood to retain its natural color, but they must be reapplied at least every two years. Clear sealers are formulated to help slow the process that allows ultraviolet light to turn wood silvery gray. However, all natural wood, regardless of species, eventually turns gray when exposed to years of sunlight. Using a rented paint sprayer, a two-person DIY team can refinish a two-story, 2,300 sq. ft. house in a 3-day weekend for about $500, including the finish.

Clean stains on wood siding
Dirt is the most common cause of discoloration on wood siding. Clean annually using warm, soapy water and a soft-bristled brush. Divide your house into 20-foot sections, clean each section from top to bottom and rinse before moving on.

Mildew appears as black spotty stains. Clean the area with a solution of one part bleach to four parts water. Wear eye protection and protect plants from splashes. Rinse thoroughly with clean water.

Rust stains often appear as dark black splotches and vertical streaks. They’re usually caused by a metal fastener, such as a nail or screw, that wasn’t galvanized. Contact with moisture causes the fastener to oxidize, leaving streaks. To remove the stain, dissolve 4 oz. oxalic acid (available at hardware stores and home improvement centers) in 1 cup warm water.

Wear eye protection and acid-proof gloves; avoid splashing the mixture onto adjacent surfaces. Apply the mixture to the stain and gently scrub with a soft bristle brush. Rinse thoroughly with water. Refinish the spot if necessary. Problem nails must be replaced with a galvanized or stainless steel fasteners.

Restore the color of natural wood siding
Siding that has discolored with age can be restored to its original color by applying a wood cleaner or brightener. These products often are intended for use on wood decks, but they work well on natural wood siding. They’re available at hardware stores and home improvement centers. Follow the manufacturer’s instructions.

Replace wood siding
Replace wood siding that show signs of damage. The most common damage comes from accidentally hitting the siding with sticks and stones thrown from a lawn mower, or from objects, like baseballs. Occasionally, wood siding may crack due to changes in atmospheric moisture. Repairs to wood siding require the expertise to remove the damaged siding while leaving surrounding siding intact. Unless you have the skills, hire a professional carpenter or siding contractor. Expect to pay $200-$300 to replace one or two damaged siding panels.

Prevent damage to wood siding
A house with wood siding is most vulnerable to water infiltration where siding butts against windows, doors, and corner moldings, says Frank Lesh, a professional house inspector in Chicago and past president of the American Society of Home Inspectors. Look for caulk that has cracked due to age, or has pulled away from adjacent surfaces, leaving gaps. Reapply a color-matched exterior caulk during dry days with temperatures in excess of 65 degrees F.

Lesh also stresses that no bush, tree branches, or shrubbery be allowed to touch the house siding. Foliage conducts moisture that can find its way into cracks and tiny openings in siding. “You should have enough room to comfortably walk between your house and any plant materials,” he says.

Article From Houselogic.com, By: John Riha, Published: August 28, 2009.  John Riha has written six books on home improvement and hundreds of articles on home-related topics. Riha has been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.

You also might be interested in:

1. Cleaning and Caring for Siding
2. 7 Signs You May Have a Drainage Problem
3. Prolong the Lifespan of Your Roof

1. Set a closing date

Your real estate agent will work with the seller’s agent and title company to schedule your closing date. Be sure it meshes with the end of your lease or the sale of your existing home and a time when you’ll able to play hooky from work. If you’re tight on cash, schedule your closing for the end of the month because that’s when you’ll have to pay the least amount of interest at the closing table.

2. Gather your funds

You may be required to bring funds to the closing. If they’re not easily accessible, arrange early to transfer them to a liquid account to avoid last-minute problems. If the title company requires the funds in the form of a cashier’s check, also leave time to stop by the bank and pick one up.

3. Purchase title insurance

Title insurance protects the policyholder against trouble with a home’s title. Your lender will insist that you purchase a policy to protect it. You should also consider purchasing what’s called an owner’s title policy from the same insurer, which protects you from fraudulent claims against your ownership and errors in earlier sales. In some areas, sellers traditionally pay for the buyer’s title policy. Shop online at Closing.com, EasyTitleQuote.com, andFreeTitleQuote.com. If your home has been sold within the past few years, ask the prior owner’s insurance company for a reissue discount.

4. Line up homeowners insurance

Get quotes and compare policies to be sure coverage will be in effect by your closing date. An annual policy should run $500-$1,000, depending on your home’s size, age, and amenities. If you live in an area where natural disasters occur, like earthquakes, floods, or hurricanes, you’ll need separate insurance to protect your home.

5. Review your good-faith estimate and HUD-1 settlement sheet

Your lender must provide a good-faith estimate of your closing fees. Some of those fees can’t change, and others can rise by 10%. Before you go to the closing, read your good-faith estimate, compare it with your HUD-1 settlement statement, and question any fees that increased.

6. Do a walk-through

Schedule an appointment to walk through the home one last time just before your closing. Make sure repairs you requested have been made, no major changes have occurred since you last viewed the property, and that the sellers left anything they agreed to leave and took all their belongings.

Also test electronics and appliances, such as the doorbell, dishwasher, washer and dryer, and oven, to ensure they’re functioning properly. Do the same with the hot water heater and heating and air conditioning systems. Walk the yard to be sure no plants or shrubs have been removed.

7. Resolve issues identified in your walk-through

If your walk-through uncovers problems, you can delay the closing until the seller corrects them. But that’s often not feasible because your lease is probably over and you’ve already scheduled movers. Another option is to negotiate a discount to your sales price to cover the cost of the work needed. If the air conditioning is on the fritz and a contractor says the repair will cost $500, ask that the sales price be reduced by that amount. If you make that request at closing, however, be ready for a delay while the title company redoes the paperwork.

A third option: Have the title company hold a portion of the seller’s proceeds in escrow until the dispute is resolved. Once that happens, the funds will be released to you or the seller, depending on the outcome.

Article From Houselogic.com, By: G. M. Filisko, Published 2010-02-10 09:27:33. G.M. Filisko is an attorney and award-winning writer who has endured several property closings, but the easiest was done through the mail. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

You also might be interested in:

1. 7 Steps To Take Before You Buy A Home
2. Step By Step Guide to Buying a Home in Cleveland, Ohio
3. What is a home warranty and what does it cover?

The basics of mortgage financing

The most important features of your mortgage loan are its term and interest rate. Mortgages typically come in 15-, 20-, 30- or 40-year lengths. The longer the term, the lower your monthly payment. However, the tradeoff for a lower payment is that the longer the life of your loan, the more interest you’ll pay.

Mortgage interest rates generally come in two flavors: fixed and adjustable. A fixed rate allows you to lock in your interest rate for the entire mortgage term. That’s attractive if you’re risk-averse, on a fixed income, or when interest rates are low.

The risks and rewards of ARMs

An adjustable-rate mortgage does just what its name implies: Its interest rate adjusts at a future date listed in the loan documents. It moves up and down according to a particular financial market index, such as Treasury bills. A 3/1 ARM will have the same interest rate for three years and then adjust every year after that; likewise a 5/1 ARM remains unchanged until the five-year mark. Typically, ARMs include a cap on how much the interest rate can increase, such as 3% at each adjustment, or 5% over the life of the loan.

Why agree to such uncertainty? ARMs can be a good choice if you expect your income to grow significantly in the coming years. The interest rate on some—but not all—ARMs can even drop if the benchmark to which they’re tied also dips. ARMs also often offer a lower interest rate than fixed-rate mortgages during the first few years of the mortgage, which means big savings for you—even if there’s only a half-point difference.

But if rates go up, your ARM payment will jump dramatically, so before you choose an ARM, answer these questions:

• How much can my monthly payments increase at each adjustment?

• How soon and how often can increases occur?

• Can I afford the maximum increase permitted?

• Do I expect my income to increase or decrease?

• Am I paying down my loan balance each month, or is it staying the same or even increasing?

• Do I plan to own the home for longer than the initial low-interest-rate period, or do I plan to sell before the rate adjusts?

• Will I have to pay a penalty if I refinance into a lower-rate mortgage or sell my house?

• What’s my goal in buying this property? Am I considering a riskier mortgage to buy a more expensive house than I can realistically afford?

Consider a government-backed mortgage loan

If you’ve saved less than the ideal downpayment of 20%, or your credit score isn’t high enough for you to qualify for a fixed-rate or ARM with a conventional lender, consider a government-backed loan from the Federal Housing Administration or Department of Veterans Affairs.

FHA offers adjustable and fixed-rate loans at reduced interest rates and with as little as 3.5% down and VA offers no-money-down loans. FHA and VA also let you use cash gifts from family members.

Before you decide on any mortgage, remember that slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment.

Article From Houselogic.com, By: G. M. Filisko, Published 2010-02-10 09:01:24. G.M. Filisko is an attorney and award-winning writer who’s opted for both fixed and adjustable-rate mortgages. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

You also might be interested in:

1. Interest rates ease, Loan demand increases
2. 4 Tips To Determine How Much Mortgage You Can Afford
3. How are mortgage rates determined?

Maintain your large kitchen appliances is part of a smart home energy efficiency plan.

Spending less money on utility bills doesn’t mean you need to rush out and purchase a whole new suite of Energy Star appliances. With occasional light maintenance and good habits, you can greatly improve the energy efficiency of your large kitchen appliances—up to about $120 annually—without sacrificing convenience.

Refrigerator/freezer

Energy-efficiency experts tell us to focus our efforts on the biggest energy hogs in the house, and that definitely includes the fridge. Because it cycles on and off all day, every day, the refrigerator consumes more electricity than nearly every appliance in the home save for the HVAC systems. The average refrigerator costs about $90 per year to operate, according to the U.S. Department of Energy. The good news is that a few simple adjustments can trim roughly $38 to $45 off those utility bills.

1. Adjust the thermostat. By setting the thermostat colder than it needs to be, you might increase your fridge’s energy consumption by as much as 25% on average. Adjust the refrigerator so that it stays in the 37-40 degrees F range. For the freezer, shoot for between 0-5 degrees F. You could save up to $22 per year. If your model doesn’t display the current temps, invest in two appliance thermometers (one for the fridge, one for the freezer). They cost roughly $3-$20 apiece at online retailers.

2. Clean the coils. As dust accumulates on the condenser coils on the rear or bottom of the fridge, it restricts cool-air flow and forces the unit to work harder and longer than necessary. Every six months, vacuum away the dust that accumulates on the mechanism. Also, check to see that there is at least a 3-inch clearance at the rear of the fridge for proper ventilation. This routine maintenance can trim up to 5% off the unit’s operating cost, says energy savings expert Michael Bluejay, saving you about $4.50 a year.

3. Use an ice tray. Automatic ice makers are a nice convenience, to be sure, but it turns out the mechanisms are energy hogs. An automatic ice maker can increase a refrigerator’s energy consumption by 14% to 20%, according to Energy Star. By switching off the ice maker and using trays, you can save about $12 to $18 off your annual electricity bill. Most units require little more than a lift of the sensor arm to switch them off. To reclaim the space remove the entire unit, a simple DIY job on many models.

4. Unplug the “beer fridge.” Many homes have an extra fridge that runs year round even though it’s used sparingly. Worse, these fridges tend to be older, more inefficient models. By consolidating the contents to the main fridge and unplugging the additional unit, you eliminate the entire operating cost of a fridge. The second-best solution is to make sure the extra fridge remains three-quarters full at all times. The mass helps maintain steady internal temps and lets the fridge recover more quickly after the door is opened and closed, according to the California Energy Commission.

Ovens and ranges

“Green” cooking all comes down to proper time and space management. By using gas and electric stoves more effectively, you can painlessly save a few dollars a year.

5. Cut the power early. As anybody who’s ever bumped a burner on an electric stove can attest, those heating elements stay hot long after they’ve been switched off. Put that residual heat to work by shutting off the burner several minutes before the end of the cook time. The same technique can be applied to the oven. The savings can add up to a couple bucks every month.

6. Match the burner to pan. When a small pan is placed on a big burner you can practically see the money disappearing into thin air. By matching the burner to the pan, electricity won’t be squandered heating the kitchen rather than the food. The reverse is true, too. A small burner will take considerably longer to heat a large pan than would an appropriately sized burner. For gas stoves, don’t let the flames lick the sides of the pot. Follow these tips and watch the utility bills shrink by a few dollars a month.

7. Do away with preheating. You can save about $2 a month by not preheating your oven (20 cents per hour to operate electric oven; eliminate 20 30-minute preheats a month). Many cooks agree that the practice is wholly unnecessary for all but a few recipes, namely baking breads and cakes. This approach may add a few minutes to the overall cooking time, but it eliminates all that wait time on the front end.

Dishwasher

As with washing machines, most of a dishwasher’s energy needs go to heating the water. Still, says Lane Burt, an energy policy analyst with The Natural Resources Defense Council, a 10-year-old dishwasher can be made nearly as efficient as a newer model simply by knowing when and how to run it. Follow a few simple tips, and you can reduce your annual utility costs by roughly $35-$54.

8. Manage the load. Most dishwashers use the same amount of water and energy whether they’re run full or half-full. You can cut your operating costs by one-third or one-half by running the machine only when it’s full. It costs about $54 to run a pre-2000 model dishwasher per year, based on government data. Proper load management can save up to $27 each year.

9. Activate energy-saving features. A dishwasher’s heated dry cycle can add 15% to 50% to the appliance’s operating cost. Most machines allow the feature to be switched off (or not turned on), which can save $8-$27 per year, assuming an operating cost of $54 annually. If your dishwasher doesn’t have that flexibility, simply turn the appliance off after the final rinse and open the door.

10.  Use the machine. Many homeowners believe they can save water and energy by hand washing dishes. The truth is that a dishwasher requires less than one-third the water it would take to do those same dishes in the sink. By running the machine (when full), you can cut down the operating time of the hot water heater, your home’s largest energy hog. Not only will you save a buck per month, you won’t have to do the dishes.

Article From Houselogic.com, By: Douglas Trattner, Published: August 28, 2009.  Douglas Trattner has covered household appliances and home improvement for HGTV.com, DIYNetworks, and the Cleveland Plain Dealer. During the 10-year stewardship of his 1925 Colonial, he’s upgraded almost every household appliance. After lengthy deliberation, he recently replaced an aging top-load washing machine with an energy-efficient front-load unit.

You also might be interested in:

1. 8 Easy Ways to Seal Air Leaks Around the House
2. 8 Tips for Adding Curb Appeal and Value to Your Home
3. Spring & Summer Seasonal Maintenance Guide — Midwest

You also might be interested in:

1. Real Estate Sales Transactions for North Ridgeville, Ohio – July 2010
2. Rocky River Real Estate Market Stats for May 2010

Avon Ohio Homes Sold July 2010

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Here are some updated real estate market trends and statistics for Avon, Ohio.  Included are charts for:

• Median Sale Price / Median Home Values
• Median For Sale vs Median Sold Prices
• Number of Sold Properties
• Number of Properties Under Contract/Pending
• Number of New Properties Listed
• Number of Homes Currently For Sale
• Number of Expired Properties
• Supply & Demand
• Average Market Time
• Supply of Inventory in Months

You also might be interested in:

1. Avon Lake Real Estate Market Stats for May 2010
2. Westlake Real Estate Market Stats for May 2010
3. Rocky River Real Estate Market Stats for May 2010

Mistake #1: Ignore contingencies

If your contract requires you to do something before the sale, do it. If the buyers make the sale contingent on certain repairs, don’t do cheap patch-jobs and expect the buyers not to notice the fixes weren’t done properly.

Mistake #2: Don’t bother to fix things that break

The last thing any seller needs is for the buyers to notice on the pre-closing walk-through that the home isn’t in the same condition as when they made their offer. When things fall apart in a home about to be purchased, sellers must make the repairs. If the furnace fails, get a professional to fix it, and inform the buyers that the work was done. When you fail to maintain the home, the buyers may lose confidence in your integrity and the condition of the home and back out of the sale.

Mistake #3: Get lax about deadlines

Treat deadlines as sacrosanct. If you have three days to accept or reject the home inspection, make your decision within three days. If you’re selling, move out a few days early, so you can turn over the keys at closing.

Mistake #4: Refuse to negotiate any further

Once you’ve negotiated a price, it’s natural to calculate how much you’ll walk away with from the closing table. However, problems uncovered during inspections will have to be fixed. The appraisal may come in at a price below what the buyers offered to pay. Be prepared to negotiate with the buyers over these bottom-line-influencing issues.

Mistake #5: Hide liens from buyers

Did you neglect to mention that Uncle Sam has placed a tax lien on your home or you owe six months of homeowners association fees? The title search is going to turn up any liens filed on your house. To sell your house, you have to pay off the lien (or get the borrower to agree to pay it off). If you can do that with the sales proceeds, great. If not, the sale isn’t going to close.

Article From Houselogic.com, By: G. M. Filisko, Published 2010-03-30 10:37:22. G.M. Filisko is an attorney and award-winning writer who wanted a successful closing on a Wisconsin property so bad that she probably made her agent rethink going into real estate. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

You also might be interested in:

1. 6 Reasons To Reduce Your Home Price
2. Home staging and preparing your house for sale
3. Step by step guide to selling a home in Cleveland, Ohio

Here’s a list of the real estate tax rates in Lorain County.  These are 2009 rates, but they are payable in 2010.  In Ohio, real estate taxes are always at least six months in arrears.  To figure out a home’s taxes, simply multiply the estimated value by the percentage listed below.  For example, if a home in Amherst, Ohio is assessed at $100,000, the taxes would be $1,430 ($100,000 x 1.43%)

You also might be interested in:

1. Cuyahoga County Property Tax Rates – 2010

Reduced to $300,000

32812 Sorrento Lane
Avon Lake, Ohio 44012

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Neighborhood Information

You also might be interested in:

1. Home for sale in Elyria, Ohio: 289 Windward Dr
2. Price Reduction! Condo for sale in Fairview Park, Ohio: 19660 Lorain Rd
3. Home for sale in Parma, Ohio: 7602 Theota Ave

You also might be interested in:

1. Real Estate Sales Transactions for Rocky River, Ohio – Year to Date
2. North Ridgeville, Avon Lake and Avon are the fastest growing cities in Greater Cleveland

Here are six tips for negotiating the best price on a home.

1. Get prequalified for a mortgage

Getting prequalified for a mortgage proves to sellers that you’re serious about buying and capable of affording their home. That will push you to the head of the pack when sellers choose among offers; they’ll go with buyers who are a sure financial bet, not those whose financing could flop.

2. Ask questions

Ask your agent for information to help you understand the sellers’ financial position and motivation. Are they facing foreclosure or a short sale? Have they already purchased a home or relocated, which may make them eager to accept a lower price to avoid paying two mortgages? Has the home been on the market for a long time, or was it just listed? Have there been other offers? If so, why did they fall through? The more signs that sellers are eager to sell, the lower your offer can reasonably go.

3. Work back from a final price to determine your initial offer

Know in advance the most you’re willing to pay, and with your agent work back from that number to determine your initial offer, which can set the tone for the entire negotiation. A too-low bid may offend sellers emotionally invested in the sales price; a too-high bid may lead you to spend more than necessary to close the sale.

Work with your agent to evaluate the sellers’ motivation and comparable home sales to arrive at an initial offer that engages the sellers yet keeps money in your wallet.

4. Avoid contingencies

Sellers favor offers that leave little to chance. Keep your bid free of complicated contingencies, such as making the purchase conditional on the sale of your current home. Do keep contingencies for mortgage approval, home inspection, and environmental checks typical in your area, like radon.

5. Remain unemotional

Buying a home is a business transaction, and treating it that way helps you save money. Consider any movement by the sellers, however slight, a sign of interest, and keep negotiating.

Each time you make a concession, ask for one in return. If the sellers ask you to boost your price, ask them to contribute to closing costs or pay for a home warranty. If sellers won’t budge, make it clear you’re willing to walk away; they may get nervous and accept your offer.

6. Don’t let competition change your plan

Great homes and those competitively priced can draw multiple offers in any market. Don’t let competition propel you to go beyond your predetermined price or agree to concessions—such as waiving an inspection—that aren’t in your best interest.

Article From Houselogic.com, By: G. M. Filisko, Published 2010-06-04 12:29:54. G.M. Filisko is an attorney and award-winning writer who has to remind herself to remain unemotional during negotiations. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

You also might be interested in:

1. 6 Tips For Buying A Home In A Short Sale
2. 5 Tips For Buying A Foreclosure
3. Making low ball offers

1. Buyer’s agency

When you’re buying a home, you can hire an agent who represents only you, called an exclusive buyer’s representative or agent. A buyer’s agent works in your best interest and owes you a fiduciary duty. You can pay your buyer’s agent yourself, or ask the seller, or the seller’s agent, to pay your agent a share of their sales commission.

If you’re selling your home and hiring an agent to list it exclusively, you’ve hired a selling representative—an agent who owes fiduciary duties to you. Typically, you pay a selling agent a commission at closing. Selling agents usually offer or agree to pay a portion of their sales commission to the buyer’s agent. If your seller’s agent brings in a buyer, your agent keeps the entire commission.

2. Subagency

When you purchase a home, the agent you can opt to work with may not be your agent at all, but instead may be a subagent of the seller. In general, a subagent represents and acts in the best interest of the sellers and sellers’ agent.

If your agent is acting as a subagent, you can expect to be treated honestly, but the subagent owes loyalty to the sellers and their agent and can’t put your interests above those of the sellers. In a few states, agents aren’t permitted to act as subagents.

Never tell a subagent anything you don’t want the sellers to know. Maybe you offered $150,000 for a home but are willing to go up to $160,000. That’s the type of information subagents would be required to pass on to their clients, the sellers.

3. Disclosed dual agency

In many states, agents and companies can represent both parties in a home sale as long as that relationship is fully disclosed. It’s called disclosed dual agency. Because dual agents represent both parties, they can’t be protective of and loyal to only you. Dual agents don’t owe all the traditional fiduciary duties to clients. Instead, they owe limited fiduciary duties to each party.

Why would you agree to dual agency? Suppose you want to buy a house that’s listed for sale by the same real estate brokerage where your buyer’s agent works. In that case, the real estate brokerage would be representing both you and the seller and you’d both have to agree to that.

Because there’s a potential for conflicts of interest with dual agency, all parties must give their informed consent. In many states, that consent must be in writing.

4. Designated agency

A form of disclosed dual agency, “designated agency” allows two different agents within a single firm to represent the buyer and seller in the same transaction. To avoid conflicts that can arise with dual agency, some managing brokers designate or appoint agents in their company to represent only sellers, or only buyers. But that isn’t required for designated agency. A designated, or appointed, agent will give you full representation and represent your best interests.

5. Nonagency relationship

In some states, you can choose not to be represented by an agent. That’s referred to as nonagency or working with a transaction broker or facilitator. In general, in nonagency representation, the real estate professional you work with owes you fewer duties than a traditional agency relationship. And those duties vary from state to state. Ask the person you’re working with to explain what he or she will and won’t do for you.

Article From Houselogic.com, By: G. M. Filisko, Published 2010-03-29 09:35:07. G.M. Filisko is an attorney and award-winning writer who zealously protected her clients’interests as a lawyer. A frequent contributor to many national publications, including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

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