Bob Kieber
Special to the Daily

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December 15, 2012
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Financial Facts: How to better utilize your real estate professionals

When real estate is bought and sold both the buyers and sellers utilize some type of professional help. They may use a real estate agent, a mortgage broker, an attorney, certified public accountant, real estate appraiser, title insurance professional, land surveyor, insurance agent or home inspector. Each of these groups is specific to the job to be performed and have expertise that many buyers and sellers do not fully utilize.

Here are a few hints to better get your moneys worth when these people work for you.

The first and foremost thing you, as either a buyer or seller, should do is sit down with your professional and have an open discussion on what you envision to be the outcome of the real estate transaction. I know that when I first meet with a potential client I want to know what they see as the conclusion of the deal.

Since I most often work with borrowers, the conclusion of my work should end up with a real estate closing where my client then owns the property. But to get to that point, I need to know much more than that the buyer just wants to own a specific piece of real estate.

The biggest mistake a mortgage broker can make is to assume that they know the goals of the borrower. I have learned to never assume that the borrower is only interested in a fixed rate mortgage. I always ask the buyer the question of how many years do they anticipate to own the property. If they are in their 30s and plan to retire living in that property, a 30-year fixed mortgage may suit them best. If the buyers state that they are investing in this property as only a starter home, an adjustable rate mortgage may be a better fit.

As to working with a real estate agent, they need to know not only how many bedrooms and bathrooms you want ,but they need to know such items as do you plan to add a new deck, garage, skylight or hot tub. These may seem like obscure items to discuss prior to even owning the property, but you need to know if you can even get a permit to do such improvements. You would be very unhappy to learn that after you purchased your dream home that you cannot make it complete by adding such simple items as a hot tub or skylight. Your real estate agent can investigate county records that show building envelopes and utility easements.

If you utilize your CPA they can advise you on federal tax benefits. Plus, if the property is an investment property they can advise you the best way to depreciate the property. The CPA will also give you ways to keep good records on income and expenses so at tax time you are ready.

The use of professionals is an important part of both buying and selling real estate. We all are specialists in our professions and love nothing more than having a client use us wisely.

For answers to your mortgage related questions call Bob Kieber at (970) 453-4700 or email him at rkieber@centennialbanking.com. Bob is a local mortgage lender with Centennial Bank. He has 30-plus years of professional experience in real estate, finance and investments, and is a longtime resident of the High Country. Member FDIC, Equal Housing Lender. NMLS Bank #401640 Broker #289610. For tax benefit information please consult with a professional tax advisor. The opinions expressed are those of the individual, and do not necessarily reflect those of Centennial Bank.


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The Summit Daily Updated Dec 15, 2012 12:29AM Published Dec 15, 2012 12:27AM Copyright 2012 The Summit Daily. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.