Buyers and first time investors are re-entering the housing market, at least in Osceola County, Florida. Working with first time home buyers many did not know, Realtor® services are paid by the seller. In reality, any Realtor® can assist you in obtaining information on a any particular home you have seen with a sign on it.
Buyers buying styles are as individual as buyers are. Some prefer to drive by a property on their own. While this is one way, it is not the best way to really see a property.
But before heading out the door, there are some things Buyers need to do, to be competitive in a Buyers Market.
- Consult with a Mortgage professional.
- Determine what you pre-approval loan amount will be.
- Lock in a loan commitment. Typically these are good for 30 days.
- Ask for a Pre-Approval Letter. You will need this when making an offer on a property.
Once that has been established, consult with a Realtor to represent YOU as a buyer.
The service is free. Commissions are paid by the sellers. The Realtor you chose should meet with you in advance, go over your criteria, needs, and budget restrictions. The Realtor will show you a Brokers Notice. This form is required. It establishes a relationship between you, the consumer, and the Brokerage Firm.
The types of relationships are defined as
Transaction Brokerage Agreement: provides the consumer with a limited form of representation and includes the following duties:
- Realtor will deal with you fairly and honestly.
- The Realtor will account for all funds (disclose and verify where escrow deposits will be held)
- Use skill,care and diligence in the transaction
- Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer.
- Present all offers and counteroffers in a timely manner, unless a party has previously directed a licensee otherwise in writing
- Limited confidentiality, unless waived by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted ina written offer, or the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential.
- Any conditional duties that are entered into by this or by separate written agreement.
So what does this mean to you?
It means the Realtor will with you fairly and honestly.
It means that if you decide to purchase a property, and give a deposit, also known as good faith, or monies for escrow) that they Realtor will account for where that check is, which Title company is holding it or in which bank the funds have been placed. Typically Title companies are used as secure, safe facilities and escrow accounts have been put into place to keep the funds secure until the transaction (or purchase) has been completed.
Using skill, care and diligence means they will do everything to the best of their ability to see the transaction to completion.
Disclosing all known facts that materially affect the value. For example, if the Realtor is told by seller that the roof leaks, the Realtor must disclose that fact to the buyer. If a buyer can see the front door is damaged, that defect is readily observable and does not have to be pointed out by the Realtor.
Presenting all offers and counter offers in a timely manner. This prevents a buyer from losing a property to another buyer because the offer was not submitted in a reasonable time. Or answered in a reasonable period of time.
Limited confidentiality: what this basically suggests, is that a Realtor may not reveal to another party what you are willing to pay. Nor can a Realtor reveal to another party what the seller is willing to accept. Or why the person is selling the home, or what the buyer is interested in buying the home.
Under a Transaction Broker Notice, you the consumer, are required to know what protection are in place for you.
Signing the form acknowledges that you have seen the form and aware of the protections in place to serve the public. It is a standard form and a copy of which should be given to you at the time of signing either in person, by fax or email.
Then you are ready to begin the house hunting process.
Sellers who have listed properties have completed several documents. One of them will be a Sellers Disclosure Form. That form is important. It gives a Buyers the sellers knowledge of the home in a clear categorized format. It covers structural, electrical, plumbing, and air conditioning among many other things. Spaces are provided for service and repairs to be indicated. This form is an excellent guide for buyers to determine an overview of the overall condition of the property they are interested in purchasing. It is signed by the seller.
For Sale By Owner properties, may not have the same forms available. A home Inspection can be performed to determine the overall condition of a home. It is advisable that even with a Sellers Disclosure, the public seek the services of a qualified Home Inspector.
The process of working with a Realtor, gives you the consumer an advantage over trying to go it alone. You have a skilled, knowledgeable professional who is licensed by the State working in your best interest. They will write purchase contracts on your behalf, and negotiate with the other parties on your behalf.
When a "Meeting of the minds" is reached, a deal is made. The Realtor can then assist you in scheduling necessary inspections, appraisals, and help solve any problems which may arise in addition to working with the Title Company to facilitate a successful closing, following up on loan approval, and receipt of proceeds pertaining to the sale. The Title company is responsible for disbursing the funds at closing.
The benefit to working with Realtor as a buyer is you derive all professional benefits without the expense.
The Realtor will then do a basis search on the Multiple Listing Service (MLS) and see what is available which currently matches your needs (this is often refered to as inventory of existing homes)
Once the Realtor has compiled a list of homes that match your needs, the Realtor will schedule showings.
Showings are an oppportunity to for you as a buyer to inspect the properties you have an interest in purchasing.
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