Stieg Strand

The subject of Ethics is an especially heavy one as REALTORS are coming up to the deadline to complete their Quadrennial Code of Ethics Mandatory training. As an author, instructor, and consultant who has been involved in Continuing Education, Sales Training, Agency/Fair Housing, and Ethics training for several years. I wanted to take a moment to comment.

• The Quadrennial Training is excellent, and needed to assist in "standardizing" what REALTORS consider "ethical" and "appropriate" behavior with the public, our clients, and other REALTORS.
• The concept that the National Association of REALTORS has been promoting called "Pathways to Professionalism" is a vigorous and badly needed look into the ways REALTORS can improve the way the solicit sales, work with prospects, and interact with other professionals involved in the real estate sales process.
• Simply put, whether you are a REALTOR, a member of a real estate related profession, or just want to know more about ethical issues, feel free to contact me. I will do my best to help!

Blessed to Serve,

Stieg Strand, Broker/Agent

RE/MAX A-1 Excellence

Minneapolis, MN

www.stiegstrand.com

See homes for first time homebuyers, move up homebuyers, empty nesters, REO's, foreclosure listings in Eden Prairie, Minnetonka, Chanhassen, Chaska, Edina, Bloomington, St. Louis Park, Plymouth, Golden Valley, New Hope, Richfield.

Go to www.stiegstrand.com & See Stieg Strand's listings.

Shameless Plug for now!

There are a lot of things to mention in this category, but when it gets down to it. In order of importance here are 8 things to do when you are even THINKING about purchasing a home for the first time.

1. Make sure you have paid all of your bills on time in the last 12 months or more, if not on time, no more than 1 or 2 - 30 day "lates" in a 12 month period. It is possible to have dinged credit and still get a mortgage, but if you are having issues just keeping up on your bills, that might be a good sign to wait until you have them under control.
2. Have at least 3 good "trade" lines of credit - They include car loans, credit cards (secured or unsecured) , Gas Cards, Department Store Cards, Cell Phones, and even in a pinch your utility bills
3. Save up at least a 3% down payment, as having that cash in reserve may not be mandatory to close, but it will be needed for about 95% of the good mortgage programs around today.
4. Do not have any large unexplained deposits in your checking or savings accounts, as it will look like a loan has taken place and most underwriters will want an explanation letter about each one.
5. Analyze a realistic payment zone for you before you meet with a lender. Reason - Most lenders will want to qualify you for the highest possible mortgage, and history has shown the industry that much of the time that the allure of the bigger home can intoxicate, even the most conservative buyers. & You don't want to be strapping yourself down with too much mortgage debt, which is really un-needed stress!
6. Talk to at least 2 local mortgage lenders, ask for referrals from trusted sources, and avoid using internet loan companies if possible, as in my opinion, they have a history of overpromising on rates and terms.
7. Choose a competent real estate agent, not always a real close friend, or relative. It may be easier to look at them during a Holiday dinner, but they should be experienced in the business, not just available.
8. Don't choose an agent based only on what they charge, or "kick-back" to you. The greater the discount offered, the greater the chance that they are making up for some other limitation in their skill set, such as good negotiation skills in your purchase, which could easily cost you thousands MORE than you might save...

The above are my opinions and observations based on 13+ years in residential sales, 6 years of instructing 18,000 real estate students in continuing education classes throughout the state of Minnesota & authoring 7 different books on real estate matters, including "Pitfalls and Windfalls of First Time Homebuyers.

P.S. Feel free to write me, if you would like me to blog more about any of these subjects, or something I might have missed!

Another thought that some people have is that they can see defects and flaws just as easily as a well trained inspector, now given that statement at its face value, it is just not true.

Having another set of eyes, especially trained eyes can not only reduce liability, but also provide the agent, and homebuyer with strong sense of reassurance that any major issues are seen, and dealt with.

In the past, I have seen home inspectors miss things - Of course, however, the great majority of the time they catch much more than they miss.

Now, with that said, my next blog entry will discuss the importance of the right home inspector, should you look in the phone book? Should an agent refer only one potential inspector? and much, much more...

The short answer is YES! Of course.

In recent years with the increase in FHA financing and the like there is a potential "yearning" for some to think that regular "general" home inspections are less important. Reason being, FHA insured financing requires an appraisal with a small home inspection component, which can lull a homebuyer and even agents into thinking that there is no need $250 to $400 more to get a standard home inspection. First, agents should NOT be recommending EVER, that you skip a thorough private home inspection, and that is according to the National Association of Realtors Code of Ethics.

I have lots more to say in my next blog!

Stay Tuned....