WHY YOU NEED A BUYER’S AGENT

We’re here to help find your dream home, and save you money and time in the process.

Do I need a buyer’s agent?

The buying process has changed a lot over the years! With real estate listings readily available online, more people are attempting to go through the buying process on their own.

To quote MSN.com, “Many experts say this is a bad move — worse, for example, than trying to sell a house without an agent. For one thing, in most cases, a buyer doesn’t pay an agent, the buyer’s agent splits the commission with the seller’s agent, so the services are essentially free to the buyer. Also, a buyer’s agent can usually access historical price data for home sales in the area, which means the agent can recom- mend a bidding strategy that targets comparable properties that sold for less, rather than the midrange.” John Vogel, adjunct professor of real estate at the Tuck School of Business at Dartmouth College, calls going through this process alone “a mistake.”

The details involved in buying a home (particularly the financial ones), can be abso- lutely mind boggling. A buyer’s agent can help guide you through the entire process and make things far easier for you. Buyer’s agents are well-acquainted with all of the important things that you’ll want to know about a neighborhood or community that you may be considering – whether it be schools, safety, traffic, age demographics, etc. A buyer’s agent can also help you determine what you can afford and scour through the MLS to find the types of homes that you’re going to want to see. Buyer’s agents also have immediate access to homes as soon as they’re put on the market, so you don’t have to waste hours setting up viewings or driving around.

If you’re considering buying a short sale, foreclosure, or new construction, the processes for buying these types of homes is vastly different than a traditional sale, and a buyer’s agent can be there to guide and educate you throughout the process, ensuring that you end up with the best deal.

When the actual time comes to make an offer on a home, a buyer’s agent can point out ways to structure the deal to save you money, and when it comes to negotiating on the purchase of a property, there’s no substitute for a professional. A buyer’s agent can help explain the benefits or drawbacks of different mortgage types, guide you through the paperwork, and be there to hold your hand and answer all of your questions (even the last minute ones), from start to close. The best part is you don’t pay the broker anything. The payment comes from the seller! The real hard work starts AFTER the ideal home is found, not before.

Who pays a buyer agent?

The buyer’s agent is paid by the SELLER

Who does the buyer agent have a legal responsibility towards?

When you hire me to represent you as a buyer agent, my fiduciary responsibility is directly to YOU. This means that I have a legal obligation to put your interests as a buyer before anyone else’s (including my own), and that I must provide you with any important information I have that affects your home purchase.

Who does the selling agent have a legal responsibility towards?

The selling agent is the agent representing the seller of the home in the transaction. Many times, buyers will contact sellers or seller’s agents directly assuming that they will net a better deal on the property. The seller’s agent has an exclusive fiduciary duty to the seller. They are contractually obligated to make the sale happen in the seller’s favor, often as close to the listing price as possible. While the listing agent can represent both sides it is often thought to not be a good idea. If you were getting divorced would you share the attorney?

Still, can’t I save on commission by going it alone?

Many people are under the impression that they can save money by dealing directly with a listing agent. They perceive that they’ll be able to save themselves about half the commission (usually 2%-3%). In some cases, buyers may save themselves a few dollars, but it definitely won’t be anywhere near 3%. When a listing agent represents a buyer, they are increasing their workload and their liability, so they’re almost never willing to simply cut their commission in half. Lastly, the fiduciary responsibility of the listing agent is still to the seller! They’re not going to negotiate on your behalf to get you a better price.

8 THINGS NOT TO DO WHEN BUYING A HOME

Don’t apply for a new credit card!

Remember that when you apply for a new credit card it can be BAD and look poor on your credit rating. WAIT.

Don’t furnish the home before you own it!

We all know that you have already picked out that new couch, entertainment center and flat screen TV. Avoid buying them until after you close on your home.

Don’t buy a new car!

If you would like to live in a new car instead of a dream home, then go ahead and pick one up.

Avoid changing jobs!

Although job changes can provide better pay or a chance for advancement, it could delay your quest for home ownership.

Don’t close any credit accounts!

It makes sense to clean up your finances by canceling unused credit cards and transferring balances to other cards to get a lower interest rate when you’re offered them. Don’t do it! This can be a bad move for your credit score.

Don’t get behind on payments!

Make sure you stay on top of your credit card and rent payments.

Don’t move money without a paper trail!

Your lender is going to need documentation for all your transactions to make sure you really have enough money.

Don’t spend your savings!

You’re going to need cash for a down payment and if you end up paying closing costs.

A Final Thought:

Remember if you have any questions on the “do’s and don’ts” while buying a home, ask your REALTOR who is there to help you make your dream of homeownership a reality.

CLOSING ON A NEW HOUSE

When it comes to sealing the deal, exercise your haggling muscles!

Make The Offer

So you’ve found your dream home... and now you want to lock it up at a dream price! Negotiating an offer is one of the most compelling reasons to hire an experienced agent like myself to represent you.

Not only will I be able to advise an ideal starting offer, I’ll be able to substantiate it with a well and extremely detailed market analysis. There are also a number of additional negotiating items that I excel in, to name a few, are:

• Getting the seller to pay some or all of the closing costs

• Amount of earnest money you’ll deposit (the amount of money that you deposit when making an offer to show that you are serious about buying the property, anywhere from 1%-10%) • Negotiating to include personal property into the deal

• Length of inspection period

• Closing date

• Having the seller pay for repairs (or reduce purchase price to compensate)

• Having the seller contribute towards a home warranty

With the initial offer, you’re going to have to cut an earnest money check, (anywhere from 1% to 10% of the purchase price), to show that you’re serious about buying the property. The check will be made out to either the real estate co. listing the property or the title company and later applied to your purchase price.

At this point, I’ll review the document for you to make absolutely sure that the deal is contingent on:

• You getting a mortgage

• A problem free home inspection

• A guarantee that you’ll be allowed to conduct a walkthrough 24 hours before closing

Home Inspection

You’re really going to want to be present during your home inspection, because you will learn a lot about the condition of your house, including what it’s made of, how it’s wired, and whether or not there are any problems that need to be addressed. If problems are found, I can generally negotiate for the seller to either remedy the problem, or reduce the purchase price accordingly. Home inspections generally cost anywhere from $300 to $1000 and usually take 3-4 hours to complete. If you’d like a list of home inspectors that I’ve had good experiences with in the past, please let me know!

Obtain Homeowner’s Insurance

If you’re applying for a loan, you’re going to need a homeowner’s insurance policy. Again, I have a number of brokers I’ve worked with in the past and would be more than happy to give you a few names to contact. You’re probably going to want to contact whoever is currently handling any of your insurance requirements, as they may offer discounts, and it’ll also just be easier if all of your insurance policies are managed by one company!

Home Warranty

The last thing you want to fret about is having something go wrong in your new home. This can be pretty affordable, averaging around $650, and is an especially good idea for first time homebuyers. Additionally, I can generally negotiate for the seller to pay for part or all of this cost.

Title Insurance

For a more thorough explanation, scroll down about 2 sections to ‘Why you need title insurance’. Title insurance cost is based on the purchase price and is a one-time fee.

The Final Walk Through

The day before, you’re going to want to conduct a final walkthrough of the home. This is to make sure that there aren’t any substantial damages that were incurred since the inspection (i.e. the mover’s dropped something and shattered some of the tiles in the kitchen). Also, you should receive a HUD-1 settlement statement which will list out the various items you’ll need to pay for at closing. I’ll make sure that everything checks out and you’ll need to have a check ready to be made out to the title company in the amount of the request.

Closing Day

After everything else you’ve been through, the actual closing will be a breeze! Make sure to bring a bunch of blank checks and a picture ID. If you’re making a down payment, you’ll probably need a certified check. At the end of the closing, you’ll be transferred ownership of the home.Congratulations on your new home!