There are people who think that a realtor is not necessary to represent them in purchasing a home. The power of the Internet allows someone to visit various homes for sale from the comfort of a desktop in the den. Many homes listed have virtual tours that give a real feel of the home. But there is more to buying a home. You should consider working with a realtor that you pick.
The realtor who has listed the property works for the seller not the buyer. This is because the seller will be paying the commission to the realtor upon the sale of the home. When you retain your own realtor to help find a home the agent works with you but for the seller. It comes back to who is paying the commission. Still the buyer's agent will try to meet your goals.
If allowed by state law, some realtors will want you to sign a buyer's agreement. This document basically states that you will retain the agent exclusively to find a home. In consideration for this the agent's duties will be spelled out. The reason the agent might want this is that there is a lot of time and effort that goes into finding you a home. This will bind you at least in good faith to stick with the one that is helping you. It would be up to you if you want to sign the document.
So with that in mind, you need to take certain steps so that you can find and work with a realtor that will locate for you the home you want and need. You should talk to several realtors, including any that may have been referred by friends or relatives. Make a list beforehand of what you want. You should have a wish list of neighborhood, type of house, square footage and lot size. Nearness to schools, churches, medical facilities and major shopping malls may play a part in your decision.
The realtor should be able to assess your needs and fit you with a group of homes to consider. The realtor should be meeting your goals by only showing you homes that you can afford and want. An important part of this process is for you to get pre-approved by a lender in the beginning. This will allow the realtor to focus on homes you can afford. It will give the realtor strength in presenting an offer to the seller's agent when the time comes. If there is more than one offer going on at the same time it shows you are ready to close.
There may be a rejection of your offer or a counter offer made by the seller. These should be carefully explained to you at the time by your realtor. It is to be understood that with any counter offer you need to take into consideration whether you can perform what is asked. Examples would be if you could qualify for a higher sales price or if you want to take on excess repairs not called for in the earnest money agreement. You will consider whether it is worth it to you to get the home or move on and look for another opportunity.
Once you have an accepted sales agreement the realtor will assist in providing closing arrangements, entry for the appraiser and ongoing communication with all parties involved until funding. A realtor who is honest, knows the business and is someone who you can get along with will be a real asset for you in completing your home transaction.
I certainly understand if you question why I believe I know what constitutes a good real estate agent. I would wonder if I were you.
Here is the answer. For more than 28 years, my husband and I have helped people buy homes. Since I left off being a kid, residential real estate and mortgage financing have occupied my life. I was a licensed real estate agent in the first part of my career and the owner of a mortgage company the last part of my career.
Most people will buy one home, maybe two. Others may purchase an investment or vacation house. In most cases you are going need the services of a qualified real estate agent. And yes, choosing a good real estate agent is crucial.
Instead of listing warnings, do's and don'ts, allow me to share how I interview and choose a real estate agent.
Number one on my list is to find an individual who makes me feel at ease. Buying a house can be difficult and exhausting at times so why complicate it by employing a real estate broker you don't feel comfortable with.
It is a shame how many home buyers I observe working with agents who are not matched well to them. The dissatisfaction is discussed for weeks, months and sometimes years after moving into a home.
I believe that buying a home should be fun and exciting. After all it will probably be the most significant and most expensive purchase that you are ever going to make. So why not work with someone that you feel comfortable with since you are likely to be in contact with them on a daily or weekly basis for several months.
Second, I want a real estate broker who is looking out for me. But how do I know if a real estate broker is truly interested in my personal well being and not simply concerned with making the sale? There are several indications.
Does this agent listen to me? If your agent doesn't directly address your concerns and questions, this may not be the real estate agent for you.
Does your prospective real estate representative talk first and ask questions later? This is another indication of whether your best interests have been kept in mind. Every great agent listens to what's on your mind after they ask what is important to you.
A thorough agent will always ask you a lot of questions before ever offering to take you out to view houses. You see, a real estate agent is a valuable asset and they know that your time as well as theirs is valuable too. So they are not going to waste your time showing you houses that you can't afford or don't fit your circumstances.
Even though it can feel a little uncomfortable, anticipate a trained agent inquiring into your finances. This is the type of real estate agent I look for.
Some agents give advice without taking into consideration your circumstances. A good agent doesn't give advice but instead presents options. Your agent should be solution oriented by presenting you with choices that allow you to select what you feel is best for your particular circumstances. Watch for and choose a real estate broker who considers options based on your needs rather than theirs. Above all never feel rushed to make a decision.
High on my list when I interview real estate professionals is watching for individuals who admit when they are unsure of an answer to my question. No matter how experienced a agent, no one has all the answers. So when I ask a question and I hear the words "I don't know" followed by "but I will find out" it is refreshing. I don't care whether my agent has all the answers. Which is why how old or how many years of selling real estate is not a deciding factor for me. A real estate broker with enough enthusiasm and energy to do that little bit extra is who I pick.
Even though it will be your home and a place to live, central to every transaction is money. Although a real estate agent isn't qualified to approve you for a mortgage, it is still important to be asked about your financial ability such as how much money you have saved for down payment and closing costs.
Top real estate agents know from experience that mortgage financing is the hub of every real estate transaction. As a home buyer, protect yourself by understanding the cost before going out to view houses and especially before you make an offer.
A good agent can help you with this too or you can simply contact a licensed mortgage broker who can prepare a Good Faith Estimate of Closing Costs. If you are comfortable asking your real estate agent, most can refer you to a couple of mortgage brokers for detailed estimates of mortgage costs for your comparison. It is critical that you know what costs to expect before you shop for a house and especially before you make an offer.
Not least, keep in mind the decision to purchase a home is ultimately yours. Take responsibility for your decision by seeking advice from people you like and feel can trust.
I often say when it comes to buying or refinancing a home, it is your house and your mortgage, no one is going to care about it more than you.
Both Bill Wehr & Kate Ford are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Bill Wehr has sinced written about articles on various topics from Mortgage, Real Estate and Mortgage. Bill Wehr has been in home loan origination for over 25 years. He is the owner of Great Pacific Northwest Mortgage , a residential mortgage company. Bill Wehr's top article generates over 49500 views. to your Favourites.
Kate Ford has sinced written about articles on various topics from Health, Finances and Family. Kate Ford, author of the entertaining and informative Get Your breaks through the mysterious code of mortgage lending. Find more of Kat. Kate Ford's top article generates over 74000 views. to your Favourites.