Predatory Behavior in House Buying with Jazmin and Carlos & Yuri Garcia

On this episode of Financially Naked: Stories from The Financial Gym, our host is Jazmin, a Certified Level 2 Financial Trainer based in California. Today, she is joined by Carlos and Yuni Garcia. Carlos is a Licensed Real Estate Agent in California and works together with his wife, Yuni. When you're ready to buy or sell a home, choosing the right real estate agent can make all the difference, especially in a competitive market. Carlos and Yuni are here to share their insights about what the home buying experience should look like and red flags to keep in mind when interviewing prospective agents.

Podcast Notes

• What does a real estate agent do, and when should someone work with one?

• It is a real estate agent's job to represent buyers and sellers with honesty and integrity. You can work with one when you're buying or selling a home.
• In these competitive times, a great agent can make all the difference. They are out there every day and know the ins and outs of the market.
• They can provide a Comparative Market Analysis (CMA) - a tool used to estimate the value of a specific property by evaluating similar ones that have recently sold in the area.
• Each buyer and level of purchase is different. Everyone has their own background, goals, needs, and limits when it comes to purchasing a home.
• A great agent will guide you through the process and make it fun because they are experts in the field.

• Qualities of a GREAT real estate agent:

• From the beginning of the process, they are timely and communicative. Great communication is important. They should make themselves available.
• They take the time to answer your questions and share valuable information. It's an educational process, and they should be willing to teach you along the way.
• Someone who checks your references and makes sure you will be a good fit for them.
• Someone who has credentials and experience in the field. Some questions to ask:
• 'How long have you been in the business?'
• 'How many sales have you made?'
• 'Are you a top producer?'
• 'Are your offers being swiftly accepted?'
• A great negotiator. Someone who will work to get you the best deal.
• A person who will be straightforward and with you through the process. Their goal should be to get you into a home that you can truly afford in an area you want to live in.

• What are some RED FLAGS to watch out for when interviewing real estate agents?
• As with every industry, there are predatory people in the real estate business.
• An unresponsive agent can stall the process when it's time to put in offers. Watch out for someone who is unresponsive, or lacks timely communication.
• A lack of professionalism, for example, arriving late or unprepared for meetings or showings.
• Never surrender your deposit to people who are promising to give you a deal. That will ALWAYS go through escrow.

• Why do some people look to sell their homes?
• The last two years, there has been a desire to upsize. People working from home or realizing they would like a little more space.
• Some folks want to downsize, or move to a different area.
• Folks looking to invest in their long term future, and want to do so through real estate.

• General best practices when preparing to buy a home:

• Make a plan. There are many steps to ensure you're ready before starting the home buying process!
• Your FICO score will determine the loans available to you. Aim to raise your score if it needs work.
• Focus on your debt to income ratio.
• Fund the emergency fund.
• Save for the down payment (anywhere between 5%-25%)
• Practice making the mortgage payments and deposit that money into a savings account.
• Get your pre-approval before getting in touch with real estate agents.
• Have your documents prepared: 2 years of tax returns, paystubs or a letter from your accountant, and bank statements are a great place to start.
• Do the research, use the internet and references from friends,
• Always get a second option. This goes for lenders and real estate agents. It is a huge disservice to yourself to only get one opinion.
• Work with a local, licensed agent, rather than one of the big platforms.
• Remember, buying a home should be fun!

More on Home Buying & Home Ownership: Gymsplaining Mortgages and Refinancing Buying a House Connect with Carlos and Yuni

Instagram: @0carlos0

Facebook: Facebook.com/carlosgarcia

Meet The Trainer

Meet Jazmin Higgins, Level 2 Certified Financial Trainer

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