Wednesday, January 27, 2016

Should I Use a Realtor to Buy

   You don't have to hire a Realtor when you're buying a home. However, you should absolutely hire a Realtor to represent your interests as a Buyer. Commissions are typically paid for by the Seller. The amount that the agent who represents you will get paid has already been decided and is on the listing agreement that the Seller signed with his/her listing agent. Some buyer’s agents have a buyer’s fee that would be disclosed prior to you purchasing the house. If there is a fee, it would typically be disclosed by the agent and would be no more than a few hundred dollars. If you hire a buyer's agent that is charging you for his services and you're paying a buyer's fee, make sure that when you buy a house that your buyer's fee is null and void if the buyer's agent gets  a commission. Also having an agent represent your interests is extremely important especially when purchasing your first home. I can’t stress this enough. There is a lot to navigate and you are going to need a capable skipper to guide you through the paperwork. If you use the Realtor that has listed the house, that is an option, but you need to be very careful. You have to make sure that the agent is representing your interests in the same way that they are representing the Seller’s interest. Honest and experienced agents have no problem taking care of both sides of the transactionBsure you make a few phone calls to agents in your area, including the listing agent of the house you like. Ask them lots of questions and use the one that you feel most comfortable with. A first time home buyer’s agent needs to be informative and patient. 
   You should absolutely have a Realtor on your side when buying a home. A buyer’s agent will represent your interests instead of those of the seller. The Realtor who is selling the house you’re interested in is the seller’s agent and represents the seller’s interests. When looking for an agent find an ABR (Accredited Buyer Representative) Realtor who has undergone training in working with buyers, met performance criteria, and passed buyer agency tests.  
   Are you completely informed and up-to-date on the legal aspects of buying a home? Are you fully confident that the seller is using all of the necessary (and correct) forms? Not only that, are you receiving the proper disclosures? Are you capable of handling the legal contracts? Any errors or omissions in these contracts can result in legal problems and the loss of your earnest money! If you’re not 100% confident, it’s wise to hire a professional real estate agent. 
   Remember these facts when you decide to work with listing agents instead of getting a buyer's agent. Listing agents are under contract with the Seller of the home you may want to buy.   The listing agent is under contract when selling someone’s home which equates to the establishment of a fiduciary responsibility on the part of the listing agent. This is good for the Seller and is a disadvantage to the Buyer being represented by the same agent. 
   Listing agents know the Seller's Bottom line. That is great, that is why we only want to work with them.  However, It is against the pre-written rule in Real Estate listing contracts for the Agent representing the seller to reveal the sellers bottom line without approval. If a listing agent tells you that you have to use him to buy the house when you are driving around unprotected without your very own real estate representative, entering open houses, don’t fall for that line.  You will be told a lot of things as some agents will attempt to convert you to become their client. This also applies if you fill out anything at any New Housing center, by writing your name on any piece of paper (interest card), you have just limited your options to have your very own agent represent and protect you! 
   Tell the Listing Agent you are working with a Realtor, However, if they show you the home without your own representative present, they now have something called “procuring cause” which means that even if you have your very own Realtor that has been working hard for you, you have just worked your agent out of getting a pay check. This is not set in stone especially if it is an open house but if you call them up and ask them to show you his listing that could apply. How would you like to go to work for several weeks, months or in some cases years only to find out you were not going to get paid? 
   Utilizing the Listing Agent can limit the options you have for buying. For one thing the negotiation could turn out to be one-sided if the listing agents main responsibility is to the seller. There is no one that can clean up the terms of the contract coming from the Seller's Agent, whom you chose or were tricked into using.  As far as contingencies, time frames, changes to the verbiage within the contract, two sided negotiation, deposits being refunded(in case you change your mind), wanting not to pay too much, total disclosure with regard to special assessments – mello roos – special taxes that should be pointed out to you by your own representative, you are severely limiting your options and become totally dependent on the agent that told the seller they would get the most money for them in the shortest time possible. 
   Make sure you get a Real Estate agent who will help you find that Home sweet Home.

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