The first steps in your house-hunting journey
are finding a lender, getting prequalified for a loan and determining your
budget. If you’ve done that and know how much you can spend, you’re ready to
begin your search for a real estate agent who will represent your interests and
help you become a homeowner. Some buyers choose an agent before finding a
lender — either way, it’s important to line up a team of professionals as soon
as you’re ready to buy a home.
A good Realtor can help guide you through the
financing portion of the home buying process by recommending a good lender. A
prequalification from a lender that your Realtor can vouch for can be an asset
during the buying process, especially if you’re competing with other buyers for
a home. Working with lenders who will answer calls on the weekends and evenings
and make sure the transaction gets to closing, is something that can be shared
with the listing agent to make a buyers’ offer stronger.
It is recommended that you begin lining up a
lender and an agent at least six months before you buy a home. Some agents work
with buyers for as long as a year .
Why you need an agent
Many people think they can buy a home without
a Realtor, but this is a challenging market with lots of moving parts! You need
a Realtor to help you manage it. You need someone who’s invested in educating
you about how to buy a home and can help you interpret the local market while
giving you some nitty-gritty advice like making sure you have some liquid cash
available before you start looking at homes so you don’t have to wait to make
an offer.
Buying a home is a three-part process,
including looking for property and arranging financing, negotiating a contract
and then getting to settlement. An agent can provide advice and insight during
each of those phases of the process.
Realtors can sometimes show buyers properties
that they didn’t think they wanted to see but that work for them. Realtors have
the knowledge and connections to push an offer or to make sure it’s written
strongly enough to compete with other offers when there’s competition. When there
isn’t competition for a property, an experienced Realtor can make
recommendations about how much to offer formulated on evidence of the actual
home value.
Because agents’ commissions are paid by the
sellers from the profit of the sale, buyers get the guidance for
free. There’s almost never a reason to buy a house without the
representation of a Realtor!
Experienced, full-time agents see so many
properties that they can help buyers understand the value in different homes
and be realistic about the condition of the property and potential repair
costs.
If you’re looking at a For Sale by Owner, it’s
even more important to have an agent representing you because you need to know
whether the house is priced appropriately. You need someone to coordinate the
appraisal and the contract contingencies and the closing.
If you plan to buy a new home, working with an
agent who’s experienced with new construction and familiar with local builders
to represent your interests.
The sales agent on site works for the builder
and your own agent can help you with negotiations, inspections and choosing
options.
Buyer agency
Agents are expected to explain agency rules to
buyers at their first consultation so they understand when and how their
interests are being represented. Many Realtors work as buyers’ agents and as
listing agents for different transactions; some work with a team on which some
agents work only with buyers and some work only with sellers.
An exclusive buyer agency represents only
buyers and never lists homes for sale.
For example, if an agent is showing a house to
a buyer they not supposed to disclose any adverse things about it to the
buyer unless you have a signed agreement. If a buyer is uncomfortable
about signing the agreement, agents always explain that the buyer can cancel
the contract at any time. Buyers need to understand that if they’re unhappy, they
can end the relationship.
Before signing a buyer-agency agreement, be
sure you understand your responsibility under the contract and how either you
or the agent can cancel the agreement.
Finding an agent
Agents say the best way to find someone
trustworthy to represent you is to ask friends and colleagues for
recommendations.
As a buyer, you need to find someone you can
trust and someone who’s smart and understands the local market. It is
very important to do some legwork and research on agents even if they’re
recommended by a friend, because you don’t want to choose someone who’s a nice
person and a fun drinking buddy who may not be a great agent.
Buyers should check out the agent’s Web site
and ask for references. Some agents are better at listings or at
representing buyers. When you get a recommendation you should find out whether
the agent was representing the buyer or the seller. Looking for an agent
who’s very familiar with neighborhoods where you want to live and your price
range can be very valuable.
You can look for open-house signs and ask
people who live in the area for names of Realtors. You need someone who
understands how to interpret the market and how offers work in different areas.
An open house can be an excellent place to
meet an agent and ask questions, but he says buyers should do their
homework and find out more about the agent. The agent at the open house
represents the seller of that property, but if you aren’t intending to make an
offer on that home, you can hire the agent to represent you.
Once you’ve identified a few potential agents,
you should interview them over the phone and then meet one or two in person.
You’ll be spending a lot of time with your agent and trusting that he or she
will represent your interests, so it’s important to take your time to find the
right person.
Agent interviews
Meeting a prospective agent at his or her
office so you can look for awards and meet the agent’s team members can be a
good way to interview a potential agent. You should treat choosing a Realtor
with the same perspective as if you’re the boss and you’re hiring a new
employee. Find out the agent’s qualifications compared to other applicants and
then do some interviews.
Your agent will be key to the success of your
home buying experience, so it’s important to take your time to choose the right
one!
What to ask your
potential real estate agent
●How long have you been in business? How many
transactions did you have last year?
●Are you experienced working with first-time
home buyers? Can you explain the buying process?
●Can you tell me about state, local and
federal programs for first-time home buyers?
●What neighborhoods do you specialize in?
●What price range do you usually work in?
●Can you provide me with a list of references?
●What is the fastest way for me to reach you
if I have a question or think I have found a home to buy?
●How often should I expect to hear from you
while I am looking for a home?
●Will you be able to give
me advice about future home maintenance or improvement projects that could help
my house retain its value?
I would welcome the opportunity to meet with you, your friends or family to discuss my qualifications and answer any of your questions about buying or selling a home! Please contact me at 210-717-6690 or morganbertram@realtyexecutives.com.
Oh by the way…I am never too busy for
any of your referrals!
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