Why shouldn't I
just look on my own? Many people have expressed to me that they just want to look at homes on their own. And I say that is great, as long as you have the support of a professional and have signed a Buyer's Representation Agreement. This support allows you access to available homes in your area of interest, and will provide you with important information about those homes. Information like when the home was last purchased, how much the owner's paid, the number of days the homes have been on the market, the asking price, if the price has been reduced, what similar properties are for sale, and the fair market value for homes you are interested in.
Why should I sign a Buyer's Representation Agreement? There are a lot of great Realtors that work ethically to protect your interests. However, there are a few that only care about getting a deal closed and getting the money. By signing an agreement it allows you to have the peace of mind that your interests are first and foremost the concern of Your Realtor (we will go over choosing a Realtor in a minute).
For example, you go to an open house being held by the Realtor who listed the home. You like the home and decide to put in an offer with the listing agent. Who is that agent already working for? The Seller, right. So whose interest is this listing agent obligated to protect first and foremost. You got it, the Seller.
Another example, there is a new housing track being built in the very area you are looking in. Signs are everywhere that the builder is giving major incentives - upgrades, reduced price, and choice lots. You think wow, I want a brand new home, and go take a look. Wonderful, these houses are in your price range. STOP! before you put in that offer. Why, because that sales representative may or may not be licensed by the Department of Real Estate. And again, who are they working for? The builder. Are they representing you? In almost all cases they do not represent the buyer. Most of the time these representatives are only selling a product. You are buying a product. They are not under contract with you to be Your Agent.
If you are a serious buyer, then you want to work with a Realtor that only works for you. The agreement also lets your Realtor know that you are serious and want the best representation possible.
What else can a Realtor do for me? It is Your Realtors job:
- to educate you on the process of home buying;
- to help you locate the right home;
- to negotiate the best possible contract for YOU;
- to guide you through the transaction without any legal discrepancies or violations;
- to ensure you meet all the stipulations and deadlines in the purchase contract;
- to assist you in choosing the right loan;
- to make sure that all of fees charged to you are reasonable;
- and to be team captain making sure each member of your purchasing team is doing their job of protecting your interests.
How do I pay for my Realtor? The seller of the home pays for the buyer's agent. The commission is usually a percentage of the homes selling price. For example - I list a home for 6%, half or 3% is going to the buyers agent. Your Realtor does not get paid until the transaction closes. So your Realtor invests lots of time in educating themselves in real estate, knowing the market for the area they service, finding and previewing properties, and showing homes to buyer's like you. They also invest a lot of money to pay for their education, purchase their license, join a Board of Realtors, lease a Supra Key, pay Errors and Omissions Insurance and split their commission with the broker. Then they have basic essentials like a car, gas, insurance, and maintenance. They are serious about their business of finding you a home and want you to be serious about looking for one.
What should I look for in a Realtor? Well you want someone who is compatible with you! You want to be able to talk openly and freely with your Realtor. If a home does not meet your criteria, you need to be comfortable enough to say so. Let's just say that you don't feel that one of your team members has your best interest at heart or doesn't treat you well. Do you feel comfortable enough to tell your Realtor about your concerns? And, do you have confidence in their ability to address your concerns. Can you ask them questions and get good, straight-forward answers, without feeling like you are bothering them or having them make you feel inferior or uneducated?
Please look for a Realtor/Agent that works on a full-time basis. A home purchase is probably one of the largest decisions you will ever make. It is in your best interest to work with a professional whose business is real estate. Your Cousin's Uncle's Best Friend's Daughter who just got her license and works part-time on the weekends may not be the best choice. Would you go to a dentist who only works every other weekend and has another job as a horse-trainer? No, you would go to a full-time professional that has all the up-to-date training and technology to ensure you get the very best dental care you can. Why would you choose a part-time real estate agent?
How can I find a good Realtor? There are many terrific Realtors/Agents who would be more than happy to represent you. First of all, prepare a list of questions to ask about Realtors/Agents in the area. These should be questions like:
- Have you worked with a great Realtor?
- What made them great?
- Do you believe they represented you to the best of their ability?
- If you could change one thing about this Realtor what would it be?
- How long did it take them to return your calls? etc.
You get the idea. Ask about the things that are important to you. Call friends, family, and co-workers and ask each one the list of questions. Now, after you have completed your questionnaires, review them to see who best fits your needs and interview them. If no one on the list seems compatible with your expectations, do some research and find agents to interview.
There are many places to find excellent Realtors/Agents. Look on the Internet (localism.com or Real Estate Agents in ____City____) for agents in your area that are full-time and know the area. Again, prepare a list of questions:
- Ask how long they have been in Real Estate;
- What can they offer you if you choose them as your Realtor;
- What is their method of communication (phone, Internet, pager, face-to-face);
- How often will they contact you;
- Why did they choose to be a in real estate;
- What is the best deal they have ever closed and why;
- What do they know about this area.
Talk to each agent, and ask each of them the same questions so you can compare the answers. Please do your homework. This is a very important transaction and you want the best representation possible. Make sure your Realtor's/Agent's values are in-line with yours.
Once you choose a Realtor/Agent, make sure you meet with them and go over with them the kind of service you expect. Realistically, they should update you every few days on what properties are available, keep you abreast of any counter offers or acceptance of any offers that have been submitted on your behalf, let you know when and where escrow will be opened, arrange for inspections, etc. Your Realtor should patiently explain the process and any unfamiliar terms. If you want a phone call every third day, then make sure you are clear that these phone calls are what you expect.
All decisions in your real estate transaction are yours to make. Your Realtor is there to offer you their expertise. They are hired by you so that you can be educated, given advice, and provided with the proper guidance to avoid risky transactions and unscrupulous people. We work for you, you are the boss. We are bound by a code of ethics and standards to negotiate in good faith, maintain integrity with all parties to the transaction, and represent our clients to the best of our ability.
Is this a good time to buy real estate? Let me ask you a few questions. Are prices up or down? Down, right. Are interest rates up or down? Yep, Down. Do you expect property values to increase in the next few years? I do. What did your parents pay for their home? What is it worth today? My parents bought their home in 1955 for 23,500. Today that same house is worth over well over $500,000. They bought their home so they could raise a family and have stability. Why are you buying a home?
Our business is Referral based. If you know of anyone who would like to purchase, sell or refinance a home, or purchase or sell investment property in the Inland Empire, we would appreciate an interview. My partner and I specialize in first-time buyers, sellers, investors, foreclosure avoidance, and short-sales in the Inland Empire and surrounding areas.
Kathryn Tharp 626/374-1583 Charles Tharp 626/374-1278
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