10 Step Home Buying Process
Step 2: The Buyers Agent
There are many good reasons to work with a real estate professional who has earned the Accredited Buyer’s Representative (ABR®) designation, representing best-in-class buyer services.Why?
Buying and selling real estate is a complex matter. At first it might seem that by checking various online sites you could quickly find the right home at the right price. But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike. In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the market and are looking out for your interests and not that of a seller. Those professionals are Accredited Buyer Representatives who have made representing buyers their primary focus.How do you choose?
More than 2 million people in the United States have earned real estate licenses. However, real estate is a tough business with a steep dropout rate, and the result is that only a small percentage of those with licenses actively help buyers and sellers. The National Association of REALTORS® (NAR), a licensed group of brokers and salespeople, bound together with a strong Code of Ethics, includes 1 million members who have gone through extensive training programs. Yet we can still see Pareto principle hard at work. If you are unfamiliar with Pareto principle, it is the 80/20 rule. In real estate this means that 80% of the business is being conducted by 20% of the salespersons. Do you really want your most important financial investment handled by someone that may have only sold one home in the last two years? To make matters worse, many agents only work Part Time in this business. This might be OK for looking at homes on the weekend, but once there is an accepted offer, business gets conducted between business hours. That is why at St. Lawrence Properties, we only use Full Time agents who are dedicated to this profession Full Time because your business is worth 100% of our focus Selecting the right agent to represent you is not unlike hiring someone. You need to interview the agent. You need to ask all the right questions that are important to you. In many cases buyers will interview several agents before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications. The experiences and recommendations of past clients can be invaluable as well so don't be afraid to ask for references. Some questions to ask are:
- Are you an Accredited Buyer Representative?
- Is this your Full Time job?
- How many buyer side transactions did you close last year?
- Are you available in the evening or weekends? (if these times are important for you)
- Will you show me All available homes for sale or just those listed on the MLS?
- Who pays your commission?
- Do you work as a Dual Agent?
There are many good agents out there however, there are two places you need to be very careful.
- Open Houses. The agent that is sitting an open house represents the Seller. Their primary job is to get the most money out of the buyer and on the best terms for the seller. These agents have been trained to ask leading questions in an attempt to get pertinent information out of a potential buyer. If you absolutely must go to Public Open Houses, take your agents card and leave that with the person sitting the open house. Do not speak to or ask question to the agent sitting these Buyer Bait Traps.
- On Line Web Sites and Communities. You can use the web to search for agents or you can use it to research agents. Remember that it is the agent themselves that have put their credentials on their web sites. If an agent claims to have an ABR designation. Check it out on REBAC. If they claim to be a Short Sale or some other type of specialists, verify it at the site of the issuing authority.
What should you expect when you work with an Accredited Buyer Representative?
Once you select an ABR you will want to establish a proper business relationship. Your agent must present you with an Agency Disclosure explaining the ins and outs of your relationship with the agent as required by the state. Your agent should present you with a Buyer Agency Contract as well because just like your job, it is very important to have everything in writing so each party knows what to expect from the other and how conflicts of interest will be handled. Once hired for the job, your ABR will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace your ABR will keep you updated and alert you to each step in the transaction process .
Step 1: Your Financial House
Step 2: The Buyers Agent
Step 3: The Pre-Approval
Step 4: Look at Homes
Step 5: Choose a Home
Step 6: Get Financing
Step 7: Making an Offer
Step 8: Get Insurance
Step 9: The Closing
Step 10: After the Closing
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