Posted by Elizabeth Dennis on December 30, 2010 | No Comments
When you are ready to make an investment on your first home, you should analyze whether you will benefit more by doing this on your own or finding help from one of the many real estate agents ready to help. Remember, buying your first home may be one of the biggest financial decisions you would make in your life, and taking the right steps are important to make it a success. You may want to consider working with a professional real estate agent who could make the task a lot easier.
Real estate agents are trained to set up appointments for home viewing, negotiate and close the deal which could be quite a challenge for you to do on your own. They also have access to industry information, such as historical sales trends, that may help you find homes within your budget.
If you search for a property on your own, you may not be that knowledgeable about the safeguards that can protect your rights. For instance, real estate contracts have conditions that should be beneficial to both seller and buyer. However, without the help of someone more experienced in dealing with real estate contracts, you may end up not getting the full benefits that you deserve. It is possible that the contract may favor the seller, which is often the case.
In order to fully benefit from the services of a good real estate professional, you should also know that there are various types of real estate agents who can help you. Not a lot of people know that Realtors, for example, are different from real estate agents. Although they perform similar tasks, there is a distinction between them. A Realtor is obliged to follow a set of industry ethical standards of practice. These standards are defined, and Realtors may lose their license if they do not follow these rules to the letter.
Agents who have not yet reached the Realtor status are not really obliged to follow strict rules. This does not mean, however, that non-Realtor agents do not do their jobs ethically. It simply means that Realtors have proven their integrity in the past, and have worked considerably harder to reach their status. Realtors swear to a pledge which states that no sale can be conducted unless all information regarding the property has been disclosed to the buyer. They are obliged to place the interests of the seller and the buyer before their own.
Real estate agents may work for the best interests of either the buyer or the seller. An agent who works for the interest of the purchaser is called a buyer’s agent. The agent finds out and shares information about the seller and the property being sold in order for the buyer to make a wise decision. If a real estate agent is working directly on behalf of the buyer, this relationship must be defined in a written agreement between them. With no legal agreement between agents and buyers, agents will often work for the best interests of the seller, even when the buyer is directly dealing with them and not the seller of the property.
Posted by Elizabeth Dennis on January 26, 2010 | 3 Comments
A New Sign in the Neighborhood
Let’s say you are just beginning the home buying process and have not yet hired a real estate agent to help you with your search. You drive by a house that you absolutely must see. You jot down the name and number of the real estate agent that is prominently displayed on the “for sale” sign. Hang on a second. Before you pick up the phone, read on.
An Agent’s Loyalties
Simply put, unless there is a written contact with the buyer, a real estate agent who lists a home works for the seller. To better understand why; try to imagine working for both parties with opposite interests? You can see how difficult and precarious a feat this is. Although this practice does exist (it is called dual-agency), it is uncommon and it is recommended that you do not become a party to it. The agent works for the buyer or the seller, not both.
Why You Might Not Want to See This Home Today
Back to the “for sale” sign. It may go without saying, but the name on the “for sale” sign is that of the seller’s agent, sometimes called a listing agent. This person’s primary goal is to sell the home for the owner while all along looking out for the seller’s best interests, not yours.
If you absolutely must see this house today and the listing agent agrees to show it to you, know that you will not get all the facts about the house during that first visit. The listing agent will not take the chance of revealing any information that can ultimately bring the seller a lower price for the home. There are a handful of things this agent knows but cannot tell you, including:
• The reason the property is being sold unless the seller specifically releases that information
• Any concessions the seller might be willing to make
• The substance of any conversations between the seller and the agent
• Any information that could give you, the buyer, an advantage; including a comparable market analysis
• Even if the agent knows the house is overpriced, she cannot tell you as much
Additionally, you must be very careful not to reveal too much information about your own situation to this agent. Though it may seem harmless to mention for what amount you are pre-approved or what you are willing to pay for a home (these things sneak out in conversations), the agent is obligated to pass this information on to the seller. Imagine making an offer, only to have your offer rejected because the seller knows that you are willing to pay more.
If You Must See This House Today
Ideally, you should hire your own agent, one that will represent only you, when seeing this or any other home. If you must look at it sooner, try to remain tight-lipped and know that the seller’s agent will not be telling you a complete story. Make the visit a quick one and know its purpose is only to learn if you want to pursue the home further; with your own agent of course.
Posted by Elizabeth Dennis on January 15, 2010 | No Comments
A brief, but eye-opening look at three common myths about working with a real estate agent. Learn the untruths about listing agents, buyer agreements, and calling many agents.
From the resource: “That agent (listed on the For Sale sign) represents the seller and is contractually bound to get the best deal for the seller. It doesn’t mean the agent can’t work with you in a fair and professional manner, but it does mean you should not disclose confidential information to the agent.”
Source: American Home Guides
Learn more about working with real estate professionals at Newbuyer.com.
Older Entries
