Your Agent's Role
You gain an “inside track” to properties and a competitive advantage, an information resource and another “team member” searching for just the right home. Your broker critiques properties with an eye towards how well it meets your needs and will point out any hidden drawbacks.
Some people choose to search on their own- without the assistance of a buyer’s agent- possibly not wanting to share their personal life with an outsider or thinking they can “go it alone” and save the agent’s commission. But a dedicated, experienced and successful broker enhances the experience and streamlines the process. They clarify your wants and needs, familiarize you with neighborhoods, buildings and projects and introduce you to the largest number of properties and alternatives- often including those not on the open market.
Also, many properties are sold without a sign ever being posted or an ad placed in the paper. These special opportunities sell to those people who have established a relationship and are committed to working with one agent. When a top broker learns of a great buy, they will contact their best clients first, not someone who just called on the phone and said "keep your eyes open". Brokers can recommend financial alternatives, explain and prepare the forms and contracts, negotiate the offer and save you thousands and thousands of dollars. A third party in the negotiation is extremely beneficial, managing possible stresses and keeping emotional and life disruptions to a minimum.     back to the top

Sell First, Then Buy
If you need to sell a property and use the proceeds to make a purchase, do it first. An offer including a “purchaser’s sale contingency” is not nearly as strong as one from a ready, willing and able buyer and most sellers will not accept it. Consider this scenario: You've found the perfect home. Now you need to make an offer to the seller (before someone else does). You want the seller to reduce the price and wait until you sell your property. The seller figures this is a risky deal, since he might pass up a buyer who does not have to sell a property while waiting for you. So the seller agrees to the contingency but it has to be a full price offer. You have now paid more for the house than you could have because of the contingency, and you still have to sell your existing property- in a hurry. Or you lose the deal. And many sellers accepting purchaser’s sale contingencies will require very aggressive pricing on your property to further ensure the contingency is satisfied. This is very risky. In order to sell quickly you might take an offer that's lower than if you had more time.
Buying before selling will likely cost you thousands of dollars on both the purchase and the sale while creating much unnecessary stress. The other pitfall is that you search for and find a property you desire and decide not to make an offer with a purchaser’s sale contingency, opting instead to wait until your property is firmly under contract or even closed. In too many instances, the property you’ve selected- probably because it was in excellent condition and had the right features and a competitive price- will be bought out from under you by some other buyer who has already sold their home and is in a position to make a quick and clean offer. Now you’re back to looking and likely trying to find an equal replacement to the property you missed. Sell your property first and you’re in the best position to act fast and negotiate assertively. It just makes good common sense. The Resources and Selling areas of this site are full of advice and strategies.     back to the top

Pre-qualified v. Pre-approved
If you are part of the majority that cannot purchase with cash and need a mortgage, get pre-approved by a lender. Shawn and the Miami Dream team provide below market, wholesale mortgages for you. This is not simply “pre-qualified” but an actual lender commitment to a specified maximum amount. A preapproval differs from prequalification in that you complete a full standard mortgage application, pay an application fee which covers your credit report and appraisal and provide whatever income documentation is required.
A prequalification is only a simplified estimation of your mortgage range based on verbal information you provide. It does not uncover obstacles including recorded judgments, alimony payments due, credit report problems, errors or inaccuracies, down payments that have not been in the clients' bank account long enough, etc. Any of these can cause you to be ineligible for financing and kill the deal. The benefits are numerous. You will be in a position to negotiate aggressively on any property in which you’re interested because you know exactly how much you can afford. You will not run the risk of entering a contract and not being able to close because you could not qualify for the needed financing. Also, you will be able to close more quickly than one who has yet to start the mortgage process. This is particularly valuable as a negotiation tool in competitive areas where there may be multiple interested buyers. You can make your offer more attractive to the seller without necessarily having to offer more money. And, if you’re competing with cash buyers, you can confidently waive the common mortgage contingency. You are in effect a cash buyer as well. Being pre-approved is a subtle and highly effective buying strategy that most people overlook and learn about too late- after they’ve lost a desirable property. Be as prepared as possible up front and you stand to gain not only the property you prefer but thousands of dollars too.     back to the top

Selecting Your Agent
Require they are a broker- not simply a salesperson. This distinction demonstrates commitment to their career and profession as well as more stringent licensing requirements. The real estate industry is easy to enter, requiring only an eight week course and basic state exam to obtain a sales license. A broker license is substantially more demanding, requiring more extensive education, experience and testing. One half of all licensed agents- 50%- will drop out of the business within their first year. You want to work with someone established and experienced.
When interviewing brokers, look for one who is active and has made recent sales in your neighborhood. Agents too often accept whatever business comes their way, attempting to operate in areas outside their area of knowledge. This is a disservice and could cost you time and money. There are literally thousands of licensed agents in the Miami area. Some are dedicated, experienced professionals. Most, unfortunately, are inexperienced and not equipped with the skills needed to succeed in a highly competitive environment. They do not know how to overcome objections, adapt to changing market conditions or negotiate the best price and terms. You must use caution and select a broker with a history of experience and success, a dedication to excellence and a commitment to a long-term career.

There is no added cost to working with a broker, so why not gain every competitive advantage you can? Contact Shawn and The Miami Dream team to learn more about the subtleties and “behind the scenes” of this business. If you’re preparing to buy (and sell) in the near future, you can email an Information Request. The information you provide is confidential and will not be shared or used for general solicitation. Also, the Resources area is full of great ideas and advice.     back to the top