How can I get the best deal on a home? Where do I start? Part 6
If you are still with me at this point-and still awake-you are doing
well. Home financing is not the most exciting topic, but it is very
important to those who are about to make a long term commitment.
It is very confusing. If you are lost, join the crowd. Find a loan
consultant that you trust and ask lots of questions.
At this point you should be aware of the type of loan that will work
best for you and after your consultation with your loan consultant
you will know what price range you can afford.
It is a good time to select an agent to help you identify the perfect
home and help you complete the purchase. Note that a licensed
agent in California does no have to be a Realtor®. I Realtor® is
a licensed agent who is a member of the National, California and a local
associations of Realtors®. They subscribe to a strict code of ethics
and are committed to providing the highest standard of representation for
their clients. I recommend that you select a Realtor®.
Another important aspect real estate law is a concept known as agency.
To put it into simple terms, an agent can represent a buyer, they can
represent a seller AND they can represent a buyer and seller in the same
transaction.
Most properties are entered into the local MLS (Realtor's® Multiple
Listing Service) in order to gain the most exposure. When the listing
agent enters the property into the MLS they also commit to pay a
commission to the agent who brings a ready, willing and able buyer
to the negotiating table and completed the purchase transaction.
In simple terms, the seller pays the commission.
So, it costs the buyer nothing to have professional representation!
Sales commissions are usually split in half, 50% to the listing
broker and 50% to the selling broker (the broker representing
the buyer).
Some buyers assume that if they find a property and agree to let
the listing agent represent them in the purchase that they are going
to save money. NOT SO! When a listing agent represents a buyer
that broker gets 100% of the sales commission. The process is
legal and happened every day.
If you are about to make the largest purchase of your life, would you
feel more comfortable being represented by an agent who already
has a contractual obligation to represent the seller? Or would you
feel more confident being represented by an agent who is dedicated
to representing you with 100% of their skill and knowledge?
I know which choice I would make. Let's see now, 100% effort
for ZERO out of pocket...
Stay tuned for the next Blog in this series.
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