Why do I need a real estate agent to buy a house? Can't I just do it on my own? How do I find a good agent?
If you are looking at a property that is listed by an agent, you most definitely want to be represented by an agent. Some people make the mistake of phoning the name they see listed on the property "for sale" sign. When you do this and state that you are not represented by an agent, the listing agent then reverts to a transaction broker (in TN, but not in all states check with your local realty board) which means that they are now a neutral party to the sale of the home. The agent cannot tip your hand to the seller and cannot tip the seller's hand to you. For instance, let's say the agent has the home listed for $250,000, but the seller has just stated to the agent the day before that they are getting really anxious to sell and are considering dropping the price to $225,000. You on the other hand just told the agent that you have been preapproved for $250,000. An unscrupulous agent would run back to the seller and say, "Hey, he's got the money. Don't lower your price." A trustworthy agent would step back and tell you to make your best offer to the seller and would remain mum to the seller what you are prequalified for as far as your mortgage loan and would not disclose to you what the seller disclosed to them yesterday regarding lowering the asking price. This is just one example. In my humble opinion, you are always better off having your own agent in the home buying process (I know some agents will disagree with me on this.)
Most if not all agents work with both buyers and sellers. To find an agent that can represent you the buyer, ask friends and family. If you are new to the area, you can find help at sites like homethinking.com which allows sellers to rank their agents skills. Go to several offices and visit with some agents. I recently dealt with a young couple from Texas who were first time home buyers. They said I was the tenth agent they had spoke with and that most of the other agents were rude to them when they found out they had not been prequalified and refused to show them anything until they were. I took them to one property that evening and three more the next morning. They made a decision on a home and headed for the mortgage company. While this is not the order of steps that I recommend in finding a home, my point is this...take the time to find someone that fits your personality and someone with whom you want to spend time because the home buying process is not a quick process in most cases. I could have treated them as the other agents had, or I could take the time to help a young couple that truly had no idea what they were doing. Visit some open houses and find an agent with whom you can build rapport. You want to have an agent that suits your style. If you're a blue jeans and t-shirt kind of guy or gal and you're agent is Ms. Aster (dressed to the nines and diamonds from head to toe) or Johnny Dynamic (my time is so valuable that I really don't have time to deal with you.), you will probably be uncomfortable. Find someone that fits your personality and the home buying process can be an enjoyable one.
As far as "can I do it on my own," if you are dealing with a FSBO(For Sale by Owner), you can do it on your own, but I do not recommend it unless you are great with contract language and feel comfortable writing your own purchase agreement. You are still going to want something in writing stating the terms of the sale. Most FSBO owners are willing to pay at least a 3% commission to the buyer's agent anyway. So, even if it is a FSBO, take your agent with you. He or she can save you lots of money in the long run in negotiation of price, terms, repairs, etc.
So, step #3- Find a good agent that makes you feel comfortable and one that can become a future friend.
Visit my website at : http://www.debmitchellcountry.com
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