First Time Home Buyer in Michigan?
How to get started... Reality 101 Crash Course Part 1:
First time buyers usually begin by searching for homes on the internet, and start calling the listing agents to set up showings.
It is important to know how the process works before you begin.
1) By law in Michigan, all real estate agents represent the Seller until such time the Buyer enters into a Buyer Agent Agreement with a selected agent.
This means that the Listing Agent is confidential to the Seller;
anything the Buyer says to the Listing Agent can and will be shared with the Seller;
the Listing Agent solely works in the best interest of the Seller.
The Listing Agent will never represent You, the Buyer. Period.
2) Before you, the Buyer, begin searching for homes, you need to have your financing arranged. When you submit an offer on a home, you must also submit a letter from your lender stating that you are pre-qualified for a loan that will cover the amount of the purchase, or a letter from a bank stating that you have cash to cover the home purchase.
Finding out what you can afford will save you a lot of time, money, energy and disappointment!
You will be much happier looking at homes you can actually buy, than starting out looking at more expensive homes because you like their look.
When reality of your price range hits, those homes will not be as wonderful as the ones you looked at $30,000 higher than what you can afford.
3) If you do not have a Buyer Agency Agreement with a real estate agent in Michigan, you are not a seriously committed home buyer.
A Realtor® does many, many things for a Buyer, beginning with finding homes that fit your needs and wants.
Without that Buyer Agency Agreement, an agent is prevented from sharing any information with you that is not in the best interest of the Seller!
Looking at homes is not a hobby for a real estate agent. We are only paid when the home sells and actually closes. Usually, a Buyer's Agent commission is paid by the Selling Broker Company from proceeds at closing (generally a 50/50 split). The Buyer only actually pays the commission if it is agreed upon in the contract, or certain circumstances such as a For Sale By Owner home.
Stay tuned for part 2 of 3...
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