Time is Money...

By
Real Estate Broker/Owner with Terry Bishop Realty LLC

Because people do not look at homes frequently, many view it as an interesting past time.  Realtors® are more than happy to show property, but because they must manage their time carefully, good agents are careful how they spend their time.

The first step is to have a consultation with the client/customer to determine whether the buyer is qualified and for how much.  It is not in the buyer’s interest to show properties which are higher in value than what the buyer can afford.  That just sets the stage for ultimate disappointment for the buyer.  At the same time, types of loans can be discussed:  VA, FHA, Conventional, and Down Payment Assistance programs.  The Realtor® can recommend lenders and discuss why local lenders are a better option than lenders out of area.

The agent should prep the buyer on what to expect and how the nine page purchase contract (Tucson) document protects the buyer and the seller.  This is a legal contract; terms and conditions can be enforced by a court.  The buyer needs to know what is in the contract and what can be enforced against him/her.

There are other documents the buyer will be asked to sign, and one is the buyer’s agency agreement.  This in essence, is an employment contract whereby the buyer employs the agent to represent him or her and it extends for the length of time determined by the buyer and his/her agent. Many agents, myself included, do not ask a buyer to sign the Buyer Broker agreement until writing a contract.  The buyer has no idea how I will represent him/her and whether they will find working with me beneficial.  And the buyer should only sign one Buyer Broker agreement, otherwise he/she might be responsible for paying more than one commission.

Every state has different rules, regulations and statutes governing real estate.  Many states are “attorney states”.  In some states, negotiations are conducted on a verbal basis.  Arizona is not an “attorney state”. The Realtor® - buyer’s agent -writes the contract, presents the contract to the seller’s agent, and both agents negotiate the terms and conditions of the contract on behalf of their clients.  In Arizona, any verbal agreement concerning real estate will not stand up in court.  All agreements must be in writing, signed by all parties.

 

If a person is from another state, his/her previous experience may color how he/she believes a transaction should be conducted.   I had a client once from New York City who told me I was conducting the transaction all wrong.  I pulled out my Real Estate Law book for Arizona and pointed out to him the statutes which governed.  His previous experience colored why he believed I was incorrect.  We must be cognizant of where people come from and what procedures they are accustomed.

Comments (3)

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Time is money, those that realize this will work to be more efficient with the time available. This is not a hobby Terry, it is a career.

Dec 09, 2014 10:02 PM
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

"Every state has different rules...".  SO TRUE!!!! Even different regions.  Transactions in Upstate NY are VERY different than NYC... imagine my delight when a downstate family member wanted to be involved...!  Education is vital.

Dec 09, 2014 10:25 PM
Terry Bishop
Terry Bishop Realty LLC - Tucson, AZ
Earning Your Trust and Confidence...

Thank you Tom and Brenda.  How correct you are Tom, it's not a hobby, it's what feeds our families and it is indeed a career and as a career, as Brenda aptly pointed out, "education is vital"!

 

Dec 09, 2014 11:01 PM