|
The
Benefits of Using a Real
Estate Agent - Buyers Agent
1.
Evaluate the specific needs and wants of the buyer and locate
properties that fit those specifications.
2.
Assist the buyer in determining the amount that they can afford
(pre-qualify/pre-approve) and show properties in that price range and
locale the consumer has determined.
3.
Assist in viewing properties and either accompany the client on the
showings or preview the properties on behalf of the client to insure
that the identified specifications are met.
4.
Research the selected properties to identify any problems or issues
to help the buyer make an informed decision prior to making an
appropriate offer on the property.
5.
Advise the client on structuring an appropriate offer to purchase
the selected property.
6.
Present the offer to the seller's agent and seller on the client's
behalf. Negotiate on behalf of the buyer client to help obtain the
identified property. Keep in mind that the Buyer Agent will be doing so
with their client's best interests in mind.
7.
Review and explain all legal documents to their buyer client.
8.
Recommendations and assistance in securing appropriate financing
for the selected property.
9.
Provide a list of potential qualified vendors e.g. movers,
attorneys, carpenters if the consumer needs these services.
10.
Most
importantly, the buyer would know that they are fully represented
throughout the real estate transaction.
Buyer
Representation
You may
create an Agency relationship with any agent you wish, however you will
find it in your own best interest to select one agent with whom you have
established trust, confidence and rapport.
Interview
your prospective agent. Ask them questions, establish in your mind “if
this person is listening to me and has my best interest a priority”.
There is nothing complicated about selecting an agent; you just need to
feel good about them. Are they competent? Do they show a caring
attitude?
Here are
some facts that you should be aware of regardless who you choose to
represent you:
FACT: Buyers Agents work
for you at their own risk.
It is
hard to name any other profession whose members work on a contingency
basis. Even attorneys charge by the hour except for some high-risk
lawsuits. You don't pay for any services up front with an agent. That
means your agent incurs the costs of doing business on your behalf until
you find and close your home.
Therefore,
it's in your agent's best interest to work quickly, diligently, and use
all his or her resources to help you meet your goals. Real Estate Agents
are compensated for their work by commissions paid by the seller when
the property closes escrow.
FACT:
All Agents have access to the same Multiple Listing Service
All
agents have access to the same information about properties, through
"Sandicor", the San Diego County Multiple Listing
Service. How they interpret or understand it is another matter.
FACT:
All agents work hardest for...
...their
clients that are not working with another agent. Once you have selected
your agent, enter into an Agency relationship with them that will allow
them to represent your best interests.
For most
people, the largest investment that they will make in their lifetime is
their home. Therefore it is wise to be represented when you make an
offer on a home. You would not go into a court of law without
representation. And you should not invest in real estate without a
Buyers Agent. The legal ramifications and pitfalls can be just as costly
to you.
How
Does a Buyer's Agent Get Paid?
The
question of who pays real estate fees is a "chicken-n-egg"
debate. The seller could argue that he pays the fees because they are
disbursed from the purchase price at the closing and thus he nets less.
The buyer could argue the same by saying that the fees inflate the
purchase price and are paid from the money she brings to the table. In
truth, real estate fees are transaction costs which impact both buyers
and sellers.
The
seller signs a listing agreement with his agent specifying a certain fee
to be paid. The agreement has provisions for splitting that fee with the
agent who sells the property.
Typically
the seller agrees to pay the listing agent a percentage of the home’s
selling price at closing. In an effort to sell the home faster, the
seller’s agent agrees to pay half of their commission to a Buyer’s
Agent. If the buyer has no representation and deals directly with the
seller’s agent, the seller’s agent keeps the entire commission.
Listing
agents offer a co-fee to all agents regardless of whether those agents
are co-operating subagents (who work for sellers) or cooperating buyer
agents. Most listing agents know that professional Buyer Agents have
serious, pre-approved buyers under contract who have made a commitment
to purchase. Reputable listing agents encourage cooperation with Buyer
Agents because it is in their seller’s best interest to do so.
Keep in
mind that the source of the agent's fee does not determine whom the
agent represents. The important issue is representation.
How
Much Does It Cost to Use a Buyer Agent?
Since a
buyer agent fee is built in to the purchase price of a home and
disbursed at closing, like any other real estate fee, there is no
additional cost to use a Buyers Agent. If two real estate agents are
involved in the sale (co-broker) and you do not have a Buyers Agent
agreement with the agent showing you the home, that agent is a
“co-operating sub agent” (an agent who works for the seller) and
must put the seller’s interest first which in turn creates a conflict
of interest.
Studies
show that professional Buyer Agents save buyers money in terms of time
and negotiating power. In addition, their up front, intensive research
helps to eliminate costly mistakes. Many can also arrange discounts on
inspections and other real estate services for their clients.
Since a
Buyers Agent specializes in selling houses rather than listing houses, a
Buyer Agent will show you the entire inventory of property including the
MLS, bank owned properties, and new construction. Whereas listing agents
will primarily try to sell you the house they have listed for their
seller.
The job
of a Buyers Agent is to represent the buyer’s best interest in the
real estate transaction and help the buyer make informed decisions.
Professional
Buyer Agents have created a referral network of other real estate
related experts who support buyer representation. They include
attorneys, mortgage consultants, appraisers, engineers, architects,
contractors, and home inspectors.
A
Buyer’s Agent Lowers Your Risk.
When you
have an agent as an advocate, you share some of the risk of home buying.
Otherwise, it is buyer beware. Your Buyers Agent will assist you, advise
you, and help you navigate the transaction legally and safely. Your
agent will make sure you take appropriate steps to protect yourself.
Buyers
Agents Understand The Current Market.
Real
estate professionals have house-by-house, street-by-street, and
market-by-market experience. Their experience is invaluable and can't be
learned overnight. Buyers Agents who have weathered the pendulum swing
between buyers' markets and sellers' markets know that the real estate
market can turn abruptly.
Rising
and falling interest rates affect the number of available homes for sale
and their prices within weeks or days. All it takes is the entrance or
exit of a major employer, and thousands of homes in a neighborhood can
be affected. As neighborhood experts, experienced brokers and agents can
help you with home buying strategies and proposals that will get the
price and terms you want.
Buyers
Agents have inventory.
Do you
want to find a home quickly? With a Buyers Agent by your side, you will.
Buyers Agents cooperate with other Real Estate Agents through an
organization called the Multiple Listing Service (MLS).
Your
agent can also show you homes outside of the MLS inventory, including
network pocket listings, Bank Owned Properties and new builder homes.
Buyers
Agents Have Up-to-the-minute Information.
The MLS
has the current broker-represented Sellers properties for sale in its
database. MLS data entry can take from one to 10 days, depending on the
listing agent, his or her broker, and the MLS. By the time the home is
posted on the Internet, it could already be sold. Clever agents don't
wait that long to find a home for their buyers; they network with each
other. Your Buyers Agent will tell other agents about you and your wish
list in exchange for information about upcoming homes for sale.
That's
how many homes are bought and sold in a hot seller's market, without a
sign ever going into the yard. If you want to be the buyer positioned to
make first and best offers on these homes, hire a Buyers agent.
Buyers
Agents Understand The Complexity Of The Transaction.
Less
than a decade ago, a home could be bought with a two-page contract. Now
consumer-mandated seller's disclosures, environmental and structural
reports, and other liabilities have turned the home transfer into a
complicated minefield. Buyers Agents work with contracts daily, and can
fully understand which points are harmful and beneficial to you. From
helping you make a reasonable offer, to providing for the discovery and
disclosure of material facts, your agent can also interpret information
for you.
If you
found out the neighbor next door to the house you are buying just built
a new fence, what does that mean? You won't have to replace the fence on
that side for a long time. To your agent, it means something else. She
or he will quickly get a survey ordered, to assure that the new fence
doesn't encroach on your new property.
Buyers
Agents Work for You... and the Transaction.
Your
agent not only represents your interests but also works on behalf of the
transaction. Does that seem like a conflict of interest? It isn't.
Buyers and sellers are natural adversaries. You want to buy for the
least price, and the seller wants the best price. Agents must be skilled
negotiators to keep bargaining chips from turning into deal-breakers.
As the
buyer, remember that you are the one in control. You can instruct your
agent how far to go in negotiations on your behalf. One day, you'll be
glad your agent talked you out of walking away because the seller
wouldn't leave the chandelier.
And…you'll
soon be in the home of your dreams!
Buyer
Agency with “The Lease Purchase Solutions Team”
Buyer agency with us will entitle you to the
fiduciary client-level services that include:
- Loyalty
- Disclosure
- Confidentiality
As
a buyer’s agent, The
Lease Purchase Solutions
Team will represent you and your
interests in the purchase of your home. This is different from a typical
sub-agency transaction where the buyer is not technically represented.
Here’s what The
Lease Purchase Solutions
Team will do for you...
- Explain the financing process and recommend a
mortgage lender for home loan pre-approval.
Very few
offers are accepted without a buyer first being pre-approved.
- Provide counseling on market conditions & the
process of buying a home.
- Provide you exposure to the entire market.
Every
property listed for sale that matches your home buying criteria.
- Provide expert advice during home viewings.
- Prepare an offer and negotiate on your behalf.
- Ensure that all of your contractual obligations
are fulfilled for your protection.
Benefit to the buyer
- Total commitment from The
Lease Purchase Solutions
Team.
- Maximum effort by a leading team.
- Best possible protection of your interests.
- Save money by (a) seeing homes before other
buyers, (b) getting a mortgage that best fits your needs &
situation & (c) receiving expert negotiation advice and service.
- Maintain your privacy and confidentiality.
- Have an entire team working for you and your
family, not just one agent.
Benefit to The
Lease Purchase Solutions
Team
- They’ll have your loyalty.
- You’ll be financially qualified and have a good
understanding of the home buying process.
- They’ll have peace of mind, knowing everyone is
working towards a common goal.
- They’ll be able to offer more services.
Looking
at property can be fun, so do it with someone who wants to make it a
pleasant experience for you.
"Work
with a Real Estate Consultant that will sell you the house you want…not the house they
want you to buy."
|
