Buyer Information
Why Having a Buyer Agent is Important!
A common misconception among buyers is - if I look at a house with the listing broker and I want to place an offer on that house, then the listing broker will act in my best interest and help me get the best deal.
Listing Brokers sometimes will work for the seller only and sometimes for both the buyer and the seller. Some sellers will not allow the listing broker to act as a disclosed dual agent. If agents are dual agents, their duties to both the seller and the buyer are limited. They CAN NOT disclose:
- The willingness or ability of the seller to accept less than the asking price.
- The willingness or the ability of the buyer to pay more then has been offered.
- Confidential negotiating strategy not disclosed in the sales offer as terms of the sale.
- The motivation of the seller for selling and the motivation of the buyer for buying.
Having a buyer agent work for you might be the best decision you make next to your decision to buy Real Estate. Most buyer agents do not charge a fee, but may ask for a retainer fee up front, but paid back to you at closing.
A Buyer Agent by definition means a brokerage agency that is engaged by and REPRESENTS the buyer in a real estate transaction. The key words are engaged and represents. If the buyer and agent are not engaged by a written contract than the agent does not represent the buyer and can not offer ANY advice. (Effective July 1, 2006)
A Real estate broker acting as a buyer agent has a responsibility to the buyer. The following link will explain in detail what they are.
Why choose Regency?
Why choose a Regency Realty Group agent? Our Agents have a thorough knowledge of the area they work in and a superb understanding of the current market conditions, current inventory, and marketability of properties in the area. Truly, the number one key to listing a property for sale is knowing and understanding the HIGHEST AND BEST USE of the property. Highest and best use means the use that will return the highest return from the market. For example, a single family home in a commercial zone might be best marketed as a commercial property instead of a residential property.
Real Estate that is incorrectly marketed could cost the seller thousands in lost profits and keep a property on the market longer than normal market time, also costing the seller money in extra taxes and mortgage payments.
When a property is listed for sale, the price needs to be low enough to prevent the seller from pricing it out of the market, but not to low to prevent the seller from leaving money behind.
Regency Agents take the time to compare your property to similar properties recently sold and properties currently on the market, comparing:
- Location
- Size
- Condition
- Age
- Acreage
- Amenities
- Current market conditions
- Time on market
- List to sale price
All of theses factors help create a value range in which a listing price can be chosen.
Being Pre-Qualified and Why
Being Pre-qualified and why
Sellers have a very different view of a Real Estate transaction then do Buyers. A seller wants to know that the potential buyer walking through his or her home is, at the least, capable of getting financing to purchase his home.
A buyer in most cases can get pre-approved over the phone in just minutes. Most lenders will send a letter to the buyer stating that he or she has been pre-approved. This letter submitted with the offer can make the difference of having an offer accepted or not accepted.
Getting pre-approved by a lender starts with gathering information such as income and long term debts. With that information, the lender can estimate the maximum house price a buyer should be considering. It is important that a buyer know how much they can afford in order to look at homes in the correct price range.
Pre-Qualified verses Pre-Approved
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What to look for when buying a home
The obvious answer is LOCATION, but there is a little more to it than that. The following is a general list (not in any particular order) of things that might or should be considered when looking for Real Estate:
- Location
- Price
- Size of living space
- Size of lot
- Condition of house i.e. (furnace/roof/siding/windows etc.)
- Zoning
- Quality of schools
- Distance to work
- Type of utilities (public or private)
- Neighborhood vs. rural
- Potential or past use of abutting property
- Taxes
- Possible association fees of restrictions
- Possible deed restrictions
- Issues with home owners insurance
- How long has the current owner owed it
- How long has it been on the market
The list could go on and on, but you get the general idea. The old saying is -the only dumb question about real estate is the one you did not ask. It is important to not assume things about a house but to investigate things you want to know.
First time buyer or experienced buyer
Most first time home buyers are afraid of the unknowns of home ownership, like what hidden costs will I have to pay or is buying the right thing to do now. Everyone you know wants to offer you advice sometimes good and sometimes very bad advice. It is important that you listen to the professionals first and then listen to your friends and family. Many first time buyers have walked away from a great house because someone they knew talked them out of it because of a previous bad experience. Not every deal goes perfectly because some things are out of every one's control.
The key word for first time home buyers is EXPECTATIONS. It is very important to let your broker know what your expectations are about the home buying process and then be open minded if your broker says that your expectations are unrealistic. There needs to be a happy medium between the buyer and the agent. For example, a buyer can not expect the broker to show them homes that they can not afford or show homes to them 7 days a week or on a moments notice. A buyer should not expect that a seller will take the first offer a buyer gives or accept a low offer because the home has been on the market for a while. It is very important and healthy for the buyer and broker to have basic ground rules as to what they can expect from each other.
Experienced buyers usually know what they can spend or afford, know for the most part where and what they want in a house, but need the guidance of an experienced broker to help find the house and close the deal with little or no problems as possible.
Experienced brokers either working with a first time buyer or the experienced buyers bring many things to the table ie:
- Awareness of market conditions
- Knowledge of the area
- Contract negotiation skills
- An understanding and assistance with financing
- Supply names of moving companies
- Supply names of home inspectors
- Supply names of title companies
- Arrange temporary housing if necessary
- Line up contractors for minor or major work
The list can go on and on. Regency agents can and do deliver the experience necessary to get the job done time and time again. That's our Pledge, Promise, and Mission.