Frequent Buyer Questions
Dear Brad: A seller's agent at an Open House offered me some of his commission if I write the offer through him. Should I?
A: No
- First of all, most sellers don't want their agent to represent a buyer on their property. After all, the seller is the one who is paying the agent.
- There is a huge conflict of interest: If an issue arises (which it usually does), you will need to ask yourself "Who is the agent going to protect first?" You or the Seller? Do you really want to take this risk with possibly the biggest purchase of your life?
- If an agent is willing to give away that much of his own money. what do you think he'll do when it comes time to negotiate your hard earned money?
- Exclusive representation is an absolute necessity in order to keep each party's information and strategies confidential. You don't see one football coach at the head of two opposing teams on the field, do you?
- Let me ask you a question. Do you think that you would be the only buyer that this agent is representing on the seller's property? Because chances are that you wouldn't be; especially if he offered a kickback to you without even working with you first. How will you feel if you don't get your offer accepted because he plays you against another buyer he is representing? Or what if your offer is accepted at a price that was bid up by playing your offer against his other buyers?
Dear Laurie: I am thinking about purchasing a home. What steps do I take?
A: Well, that is what we're here for! The very first thing we do is sit down with you and have a buyers consultation. We will fill you in on market trends, prices, upcoming listings and good value neighborhoods. Then you must talk to a lender to get pre-qualified for a loan. We are able to refer you to a few good lenders that out clients have had good experiences with. Before you talk to a lender, have the following information ready: annual income, amount of cash you have for a down payment, other home loans, credit card balances, other loan balances (e.g.) car, student loans, other factors affecting your income (e.g.) child support, tax payments, dividends, etc.
When you are pre-qualified for a loan, we can start showing you properties. We will listen to you every step of the way, adjusting your criteria if need be.
Dear Stacy: Do I really need to be pre-qualified?
A: Yes, even in a buyer's market, is a good idea to get pre-qualified.
Most sellers require a pre-qualification letter with your offer to ensure your financial standing to purchase their property. So you should have that readily available when it comes time to make an offer. In general it will make your offer look stronger; and it costs you nothing to get pre-qualified.
Dear Brad: Ok, what exactly is pre-qualification?
A: Pre-qualification is when you have spoken with a lender, usually over the phone, about possibly obtaining home loan.
We have a preferred lender who will give preferred pricing and optimum service. You will provide him/her with the information described above. He/she will then give you an estimate of the amount you would qualify for if all the information you have provided is accurate. This does not mean that you are pre-approved! People often think because they are pre-qualified they can get the loan when they find the home of their dreams. That is not true. At this point in the loan process they have not run a credit check, nor verified any of the information you have provided. There may be glitches on your credit report or perhaps you failed to remember a debt that you owe. All of these factors may affect your loan amount and interest rate.
Dear Laurie: Can you show me a home even if it is not listed by you?
A: Yes
We are able to show you ANY home, new or resale, no matter who the listing broker is.
If you see a home advertised in the newspaper, or if you drive by a home that interests you, please call me! If you visit an Open House, please tell the seller's agent in the home that I am representing you.
Remember, all home information is always available to me, even if it is not a Bizzy Blondes listing.
Dear Stacy: When we find a house we like how do we go about purchasing it?
A: You will need an earnest money check to accompany the Offer to Purchase. This may be in the form of a personal check, or in some cases such as a Probate Sale, a certified check. A minimum of 3% of the sales price is the norm. When your written Offer to Purchase is presented to the seller, he/she can either accept, reject or counter your offer.
When the seller accepts your offer, or you accept his/her counteroffer in writing, you have a binding contract for sale on that property. Your earnest money will be deposited into an escrow trust account and held until closing, unless another arrangement is made.
Dear Brad: What is a "contingency?"
A: A contingency is your "safety net" to cancel the contract and get your deposit refunded within a certain period of time if an unforeseen occurrence should arise. For example, if after your home inspector visits the property you find out that the roof is caving in, you can ask the seller to repair the roof before closing or credit you money to make the repairs yourself. If the seller refuses both, then you may cancel. The contract defaults to 17 days for the inspection, loan and appraisal contingencies, but that amount of time is usually reduced in competitive markets.
Dear Stacy: Would it be in my best interest to work with several Realtors and not just one?
A: No. It is in YOUR best interest to work exclusively with me.
We have access to every home that is in the MLS. We are self-employed, not on an expense account, and will be paid only when we find the right home for you.
Your loyalty is appreciated, and in return, you will receive the maximum in service from our team.
All of my time and professional advice, experience, and assistance is FREE to you!
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