BUYING A HOUSE

"A buyer’s agent will guide you through the home-buying transaction."

Here are some of the things a buyer's agent can do:

Find the right property. After determining what clients are looking for and what they can afford, the agent will schedule appointments to tour homes that fit the bill. The agent can also explain the ins and outs of various properties and neighborhoods to help buyers decide which home is right for them by explaining the pros and cons of various options.

Negotiate the offer. The buyer's agent will advise clients on an appropriate price to offer and present it to the seller's agent. "Then they will negotiate on your behalf and write up the contracts for you," says Matt Laricy, a Realtor with Americorp Real Estate in Chicago. This is where the agent's experience in negotiating deals can save you money and help you avoid pitfalls like a fixer-upper that's more trouble than it's worth.

Recommend other professionals. A buyer's agent should also be able to refer you to reliable mortgage brokers, real estate attorneys, home inspectors, movers, and more. This can also help expedite each step of the process and move you to a successful sale all the faster.

Help overcome setbacks. If the home inspector's report or appraisal brings new issues to light, a buyer's agent can advise you on how to proceed, and then act as a buffer between you and the sellers or their agent. If negotiations become heated or hostile, it's extremely helpful to have an experienced professional keeping calm and offering productive solutions.

Buyer's vs. listing agent: What's the difference?

Buyer's agents are legally bound to help buyers, whereas listing agents—the agent representing the home listing—have a fiduciary duty to the home seller. "That's why it's in your best interest as a buyer to get an agent who is there to represent you,"

FOR EXAMPLE:

Let's say, for instance, you walked up to the listing agent at an open house and gushed about how you love the home and want to buy it, but you will need to move soon because you're expecting your second child and need to decorate the nursery pronto, or the lease on your rental is up in a couple of months. A seller's agent could then use this information against you by informing the seller that your clock is ticking, so they shouldn't budge too much on their asking price—or at all.

Yet make this same confession to the buyer's agent you're working with, and it's all fine—this professional would know to keep this info private from sellers (and their agents) so it can't be used against you.

The agent/buyer contract

Once you agree to work with an agent, you will have to sign a contract called an Exclusive Buyer Agency Agreement outlining the agent's services and compensation (more on that next). This contract also means that this agent will be your sole representative and that you won't work with other buyer's agents.

How much do buyer's agents cost?

Home buyers don't need to worry about the expense of hiring a buyer's agent. Why? Because the seller pays the commission for both the seller's agent and the buyer's agent. Typically the commission equals about 6% of the home's sales price, which is split evenly between both agents (on a $200,000 home, that would be $6,000 apiece).

How to find a buyer's agent

A good buyer's agent can ease your way to homeownership—and a bad one can result in a bumpy ride. As such, don't just take the first buyer's agent you meet (which is what two-thirds of home buyers do), or blindly accept the recommendation from a friend (over half do this).

Use a Buyer's Agent

It's important that you choose an agent who you feel comfortable with and is an experienced agent who is there for you. Your agent should be:

1 - actively finding you potential homes,

2 - keeping you informed of the entire process

3 - negotiating on your behalf,

4 - answering all of your questions with competence and speed. 

First, find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer's agent, he or she is required not to tell the seller of your top choice. In addition, he or she is also focused on getting you the lowest asking price. 

Also, when you use a buyer's agent, you will see more properties. Not only are they plugged into their Multiple Listing Service, but also they are actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.

Credits: https://www.realtor.com

“I want to buy a home, but I don’t want to commit to one agent.”

Loyalty is a two-way street. If you want an agent’s help, understand that he or she will spend a considerable amount of time, money, and effort shuttling you from house to house, scheduling home viewings, and previewing listings on your behalf. The tradeoff for this hard work is to sign a buyer’s agency agreement, allowing them to formally represent you as a client (versus merely a customer).

“But Zillow said…”

Stop listening to Zillow. Relying on Zillow to determine your home’s value is, at best, a crapshoot. Zillow itself even encourages buyers, sellers and homeowners to conduct other research such as “getting a comparative market analysis (CMA) from a real estate agent” and “getting an appraisal from a professional appraiser.” Sure, Zillow’s Zestimates® are quick, easy, and free… often it is not accurate The point? Just let a local real estate professional (who will actually see your home’s unique features in person) determine its fair market value.

“I’ll get pre-approved for a mortgage later.”

This puts you at a huge disadvantage right out of the starting block. First, an agent worth his or her salt won’t agree to invest countless hours showing homes to someone who isn’t approved for a loan. Secondly, it’s an unfair burden on the seller to bring tire-kickers into their home (which is how you’ll be perceived). Therefore, listing agents and sellers will often require a pre-approval letter alongside your offer. This letter strengthens your offer by instilling confidence in all parties that you’re financially capable of purchasing the home.

“I don’t want to bother my Realtor®. Can you (seller or seller Realtor) just show me the house?”

Contrary to what you think, asking your agent to see a home is not “bothering” them. It’s their job. It’s how they get paid. It’s what they love doing. If there are extenuating circumstances preventing your agent from showing you a home, let him or her call the listing agent directly. Don’t worry, you’ll get to view the home one way or another. But if you’re already represented, then going straight to the listing agent is considered is a faux pas in this industry (and a bit of a slap in the face to your agent). Just don’t do it.

“Oh, you sell real estate? You must make good money.”

Not really. According to NAR (National Association of REALTORS®), the median gross income of REALTORS® was $47,700 in 2013, and that’s before expenses like MLS fees, marketing, insurance and everything else. Also, keep in mind that commissions are split between the brokerages representing the buyer and seller. In other words, of that X% you paid your agent to sell your home, he or she saw only a tiny fraction of that.

Why choose a home warranty over a handyman?

Manage expenses — A big upside to home warranties is the ability to better manage expenses. For covered items, you’re responsible for the trade call fee ($65 - $100) instead of the full cost of repairs. This helps you budget more effectively and makes it less likely you’ll be caught off-guard with a massive bill.

Trusted technicians — When you work with us, you know you’re working with a trusted technician. We’ve extensively vetted anyone we send to your property to make sure they know their stuff. When you hire a handyman, it can be a bit of a gamble. It’s hard to know the expertise and experience of the individual.

Quality of service — With a home warranty, you have a full team at the ready to assist you. Though we can’t speak for all companies, we can say — our customer care team does a top notch job making sure they keep the lines of communication open — from getting you scheduled appropriately to making sure you’re happy post-service. We promise to deliver a professional and respectful service experience.

Supervision — With a home warranty, you have a clear team who takes responsibility for the work performed. If repairs aren’t made up to your standards or issues persist, we’re here to take responsibility and ultimately ensure the problem is resolved. If you hire a handyman, who will you go to if you aren’t pleased with the quality of the work? How can you ensure that your repairman won’t just fade away?

Free heating and cooling checkups — This one is unique to our home warranty company, and it sets us apart from your typical handyman too. Our plans include free heating and cooling checkups twice a year. These help you proactively maintain your system, versus leaving having to schedule and pay for separate handyman appointments for this service.

Credits: https://platinumhw.com/home-warranty-versus-handyman/