Why Locals Preferred

by Mike Yeo on January 29, 2011

I have learnt the hard way through some clients’ choices that sometimes, working with businesses especially when they are not local can cause more heartaches in the home buying process. Home buying can be stressful enough but when you add more complex equations to the mix… sometimes, it’s shear terror.

Use Local Lenders

Typically, I give several names of lender to my clients as recommendations if the buyers do not have a mortgage lender in mind. Most of the time, the buyer pick one of the names, call and more often than not, decides to use one of lenders in my network.

One of my past transactions this year was working with a lender from Chicago area. (This was not on my recommended list). This person/ company does not know how we operate here in Texas and more specifically, upon completion of the appraisal report had ask for business liability insurance to prove that this appraiser was a licensed business here in Texas.

On top of having to coordinate inspection, repairs, finding a reputable appraiser for this lender, I had to jump through hoops satisfying the lender’s request for proof of licensure and business insurance she carried. My appraiser had to do the same on her end. For 2 weeks, we were trying to find a written answer. Phone contacts to the Texas Real Estate Commission for the lender to call personally was not good enough.

After that experience, I tell my clients that they can choose to do business with anyone they want, including those NOT local. After I share my story, they understand the problems we could potentially face.

I have also been bitten by the Internet lenders several years ago. Long story short, we never closed and in the end, we had to use a local lender to close because they understood the condominium qualifications for loan approval.

Use Local Appraisals

With HVCC, we have no control over which appraiser works on the appraisals for conventional loans. For FHA, lenders could still select their own appraisers. There are many stories about how appraisers from over 100 miles away (not local) didn’t appraise the home market value accurately. Hence, it costs the home purchase or required more down payment for loan security.

If you read more stories on here, you will hear more stories such as this.

Whenever possible, use a local appraiser that lives, works and play in your backyard.

Use Local Real Estate Agents

A licensed Realtor(R) can work in any area they choose to. Some geographical areas are larger than others. While it is their choice to serve the entire metroplex, I choose to serve a very small one. It is very difficult to not just understand home values, but what’s available out there such as floor plans, choices of builders, local schools, shopping conveniences, etc. We must see beyond the communities.

Unless a Realtor lives, plays and work on those streets, I believe that the Realtor cannot be effective for their clients if they serve a large area. However, the choice is the agent’s. Each person learns and works differently. Some can do it better than others.

PS: Even though I serve Frisco and the surrounding cities, there are pockets of the metroplex that I work in because of my previous experiences in such communities.

Note to Professionals: I think there should be a fine line drawn between wanting to serve more clients versus what opportunities are available to serve. Sometimes, no is a totally acceptable answer. Clients first.


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Contact:


Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY).

Why Locals Preferred

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