SOCIAL COMMENTARY
BLACK IS THE COLOR OF LOVE BY DR. STEPHAN M. SCOGGINS
Happy New Year!
This year, our focus will be to provide our faithful followers with educational and wealth building information. What better way to start the New Year than to buy a new house? This month’s article will be dedicated to Home Buying and Selling. So, what is the most difficult and common error of home buying and home selling? That’s right, knowing how to begin. For your convenience, we recommend that you contact our very own, Stephan Scoggins at www.EsteemTeamProperties.com for exclusive real estate broker representation. Let’s start with the sellers. Unfortunately, it’s not enough to watch a few episodes on HGTV and then feel as if you’re ready to sell your home, especially since there are so many LEGAL ramifications to a real estate transaction. You absolutely need a licensed real estate professional who is representing YOUR interests. If you are a seller, you should have a realtor who is exclusively representing the seller. If you are a buyer, you should have a realtor who is exclusively representing the buyer. In each of the aforementioned cases the realtor owes a fiduciary duty to each of their clients, respectively. When a realtor is representing BOTH the buyer and the seller that is called, “dual agency”. Well, in a “dual agency” following current California law, a broker may act as a dual agent for both buyer and seller in a transaction as long as both parties consent to the arrangement after full disclosure that the broker owes a fiduciary duty to both. My concern is that the lines may become “blurred”, especially since the ENTIRE transaction must close before the realtor can receive a commission. Even if unintentional, it could “appear” that either the buyer or seller did not receive a thorough representation from the dual agent. For that reason, I would HIGHLY suggest that both the buyer and seller have their OWN exclusive representative. Now, as the seller, there is one very basic requirement. Clean your damn house!(smile) That’s right, clean and de-clutter your house. Literally, go outdoors and walk inside the front door with “buyers” eyes. A buyer will IMMEDIATELY say things like, “What is that odor? What is all of that stuff? How many people live here? Why are the closets overstuffed? Will I get a discount for all of the unfinished
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projects? Undoubtedly, you want to maximize your profits. This is not the time to become “emotional” because a realtor suggests that you have your home staged…with other furniture. If your home requires staging, it is just because it is the BEST way to maximize space, create functionality and provide appropriate splashes of color. For the buyer, please, please, please, let your FIRST stop be with a mortgage lender so that you can determine what you can afford to buy. So many buyers start by going to open houses, not having the slightest idea of their buying power. Then, they become very sad when they discover they have been looking at homes in the wrong price point. What a downer. An exciting option, that Esteem Team Properties does VERY well, is to have access to lenders across the country to strengthen finding the best fit for your needs. One size does NOT fit all. Way too often, buyers have been told, “Sorry, you can’t buy a home because you don’t qualify”. When in actuality, what has really happened is only that a LOCAL lender rejected your submission. There are some basic and standard requirements of MOST lenders for a traditional mortgage loan. You will need tax returns for the last 3 years, pay stubs for the last two months, “seasoned” money in the bank. Seasoned money means money that has been sitting in the SAME bank account for at least 6 months. It would also be best, and actually necessary, for you to already clean up your credit, as in, no outstanding collection accounts, public liens, etc. Ultimately, the interest rate that you will qualify for with a lender is going to be effected by your FICO credit score, amount of down payment, and your amount of earnings. The better you have those items in place, the better the outcome. Treat yourself to an amazing New Year. Buy your new dream home or sell what you have and upgrade or downgrade to fit your needs so that you can experience unspeakable joy. Please accept this personal invitation to visit www. BlackIsTheColorOfLove.com and learn about educational and scholarship opportunities for kids of all ages, kids of all races. As a nation, we MUST change our culture, our learned behavior, so that it can reflect an expression of love in ways that we have only dreamed. Future articles will provide helpful resources and guidelines, with a specific “How To” achieve the desires of your heart.