Why you Need a Good Buyer’s Agent

In any new endeavor there are unexpected lessons to be learned. The same is true when buying your first home. The most important thing to do when confronted with a new experience is to gather as much information as possible. This will help to educate you on which paths to take and which paths to avoid. This overview is intended to help equip you with the knowledge necessary to make your first home buying experience a positive and fruitful one.

The most important decision you need to make prior to searching for a home is finding a buyer’s agent. The benefits of having a buyer’s agent are:

1. Experience- A qualified buyer’s agent has experience in all aspects of a real estate transaction. They will know how to handle and guide you through unexpected issues. IE: multiple offer situations, repair allowances, closing cost reductions, home inspection revealed defects, wood destroying insect reports, title issues, contract extensions, negotiations, etc.
2. Market knowledge- They will understand the market conditions and have information not available to the general public on all the properties available on the market. Market conditions can vary from neighborhood to neighborhood. A good buyer’s agent will use information based upon the market conditions and an individual listing’s circumstance to negotiate the best price and terms possible for your purchase.
3. Referrals- A good buyer’s agent has the contacts you need to ensure a smooth and informed transaction. Once you find your buyer’s agent they will be able to guide you to good lenders, inspectors, appraisers and closing attorneys. This will help you avoid complications and misinformation.
4. Representation- Sellers have listing agents who represent their interests. Listing agents are contractually bound to represent their seller’s interests and not the buyer’s. The commission structure of 99% of listings is set to be split by 2 agents. One for the buyer and one for the seller, each with their own representative agents. In seven years of selling real estate I have never seen a buyer pay extra for having their own representation unless it was a commercial deal. That fact alone makes having a buyer’s agent a “no-brainer”. Why not have representation when it will probably cost you nothing and help you throughout the process?

The second most important step is choosing a lender. As long as your buyer’s agent has a solid reputation, is a full-time agent, and you are comfortable with them try their lender referrals if you have not already secured a lender. If for any reason you feel uncomfortable with the referred lenders, let your agent know and begin shopping for yourself. Using the referred lenders are a benefit to you because a strong buyer’s agent has developed relationships with lenders that have a proven track record and will be able to more closely work to get the deal closed for you.

Tips for choosing a lender:

1. Meet with them face to face. Don’t be just another voice on the phone. A face to face meeting develops rapport and will help you to receive more personalized service. 9 times out of 10 out-of-state lenders you found on the internet and have never met will give you more headaches than you expected or even worse.
2. Shop mortgage brokers or originators – not banks. Mortgage brokers/originators usually can offer you a wider range of options for financing. Most banks have specific guidelines on lending and cannot offer you the flexibility that mortgage brokers can. We have a mortgage originator that has always met or beat any quoted financing from any bank. We use this mortgage originator constantly and he is consistently on top of the financial market conditions and all of our clients’ specific loans. He does it for less than the bank and we have found him twice as reliable.
3. Ask for a “Good Faith Estimate” (GFE). A “GFE” will break down your estimated closing costs and is required by law to be provided to you by your lender. You can use a “GFE” to compare local lenders and make a decision on which “professional” provides the best service for less. NOTE: Have your buyers agent review each “GFE” to make sure that nothing was left off. If you choose a seemingly cheaper lender who actually just left something off you will usually find that their service is as inept as their “GFE”. For all practical purposes – you just want to make sure you are comparing apples to apples

Other important items to note:

1. If you don’t expect to live in your new home for a long time, IE: military transfer, it is likely to be in your best interests to consult an Investment Realtor. A good Investment Realtor as a buyer’s agent will help you to choose your purchase while developing an ‘exit strategy” which can have a huge impact on your quality of life once it comes time to sell.
2. Home inspectors are worthwhile. They cost between $250 & $400 but they can save you thousands, even tens of thousands. It is especially critical for first time buyers to hire an inspector and be present for the inspection. This way the buyer will become familiar with the maintenance items and issues with their new house. Think of the inspection as a “class” on your new home. Not every inspector is the same. Make sure they are licensed and reputable. Any full-time agent will have a qualified home inspector they can recommend.
3. Be prepared to act. Before you begin looking at properties for sale you need to be pre-qualified with a lender. You want to make sure you shop the correct price range! No matter how slow or active the market is you can bet that when a good listing comes up for sale other people will want it as well. If you ever are in a multiple offer situation on your “dream house” and you do not have a pre-qualification letter but the other buyer does, guess who probably gets the house. Don’t miss out! Be prepared.
4. How do you choose a buyer’s agent? The simple answer is interview agents until you find one that you are comfortable with. Please consider us. My partner & I are both full-time agents who specialize in different areas. Both of us are experts in our field and can easily arrange a meeting to sit down with one, or both of us. We work together on every transaction giving you the benefit of 2 full-time agents instead of one. We are also two of the top Investment Realtors on the coast which means you won’t find more information anywhere else! Learn specifics by clicking about us and surfing our site! Please don’t hesitate to call or email us anytime. As your agents, we understand that nothing is more important to you than getting answers quickly and precisely. We are here to serve you!

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