Now that you're well into the process of obtaining your dream of home ownership, you've probably followed the steps necessary to ensure that the purchase of your first home is a smooth process.
Home ownership has many advantages and benefits, as you're aware, and the process of buying your first home doesn't have to be as time-consuming or complex, if you're following a sound plan.
Before you begin looking for a Realtor® to hire as a Buyers Agent, let's recap what you've done so far, to make sure that you are really ready to start looking at homes.
First, you've gone through the process to find out how much you can afford. Knowing how much you can afford will assist your Realtor® in identifying the right properties for you to view.
- Second, you've reviewed Common Mistakes Smart People Make When Buying Their First Home to know what common pitfalls to avoid when making your first home purchase
- Third, you've interviewed and hired a good lender to get Pre-Qualified. If you are really ready to buy, get Pre-Approved. A firm approval will make it much easier for your Realtor® to negotiate the price of your home, and gives you an advantage over someone who is not approved, or is simply pre-qualified.
Pre-Qualified vs. Pre-Approved - What's the difference? Getting pre-qualified may sound official, but it is really a ballpark estimate of what you can afford. Getting pre-approved means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan prior to you finding a home to purchase. Just remember- don't give out your social security number to several different lenders. Start with the pre-qualification process, and once you've found the lender you like, then get pre-approved.
Now that you're pre-qualified, or pre-approved, it's time to find a Realtor® who can represent you as a Buyers Agent.
Why Do I Need A Buyers Agent? The seller of the house I like already has a Realtor®.
Traditionally, real estate agents represent the sellers in a transaction. When you are not working with a Buyers Agent, there is a chance that you may not be able to negotiate on price as well or request contingencies. It is best that you hire a Buyer's Agent, who will represent your best interests, and the seller's agent will represent the seller's best interests.
A Buyers Agent's job and legal duty (fiduciary responsibility) is to you, the buyer. Before working with an agent, it is always best to establish whether they are a buyer's agent or a seller's agent. Since you will be working and spending a lot of time with your Realtor®, you'll want to feel like your working together as a team.
A Buyers Agent can guide you each step of the way to prevent costly errors. Failure to find out about defects in the property or the actual value of the property can be an expensive mistake. Failure to negotiate a contract that works for you can be a costly mistake. You will receive advice and assistance in selecting the best property and determining an offering price when you work with a Buyers Agent.
Who pays the Buyers Agent fee?
That depends. Buyers Agents generally receive a share of the sales commission built into the list price. Many listing agreements between the seller and the seller's agent indicate whether the commission will be split between the seller's agent and a buyer's agent. That's because most sellers are prepared to pay a commission simply to get their home sold. They aren't concerned whether it's a Buyer's Agent or a subagent that shares the commission.
The Bottom Line
In summary, here are just some of the reasons you'll want to hire a Buyers Agent to help you find your first home.
A Buyers Agent will fully represent your best interest
A Buyers Agent will give you help in evaluating property
A Buyers Agent will negotiate to get you the best price and the best terms
A Buyers Agent will do due diligence to help you avoid costly errors and identify defects in the property that you should be aware of.
Related Posts to this topic:
Forbes.com offers the follow video tips for the first time home-buyer: View The Video
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541-466-5094 Office • 541-936-1630 Cell • 106 W Bishop Way, Brownsville OR 97327
Written By: Alecia A. Barnes -Proud to be a Realtor® in the State Of Oregon - Serving Albany, Brownsville,
Corvallis, Eugene/Springfield, Halsey, Lebanon, Sweet Home, and the surrounding areas. If you are thinking of
moving to Oregon, or are looking to list or buy property, give me a call, I'd love to help. Contact Me For A FREE Homebuyers Booklet!
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