Real Estate
Report:
Buying A Home Without A Real
Estate Agent Can Cost You BIG!
By Lynn Byrne
Finding
a home that is priced below market value and navigating through the mechanics
of the real estate transaction are not easy! If you have a tax question, or
need legal advice, you seek a professional. When it comes to finding the right
house for hundreds of thousands of dollars, and making sure the transaction
goes smoothly, you need your real estate professional!
Best Part Is, It doesn’t Cost You A Dime!
When
you a buy a house through your real estate agent, she or he is taking care of
you at no cost to you. The seller typically pays your agent, so you get
representation for free! That’s a bargain, considering all of the service your
agent will provide for you:
Finding Your Home
Your
real estate agent has access to the right resources and networks to find homes
that are “undervalued”. Of course, you can find homes on the Internet or
through local ads . . . but houses that are placed on the market below
market value often don’t ever make it to the MLS, let alone the
Internet! Real estate experts know that less than 15% of the homes sold in America
are ever advertised in the newspaper or in a magazine. Your real estate agent
is privy to these “steals.” She or he is in constant contact with the other
agents who have listings coming onto the market. Working through your agent,
you can get “first crack” at these properties before they are advertised to the
public.
In
addition, your agent can find you the “right” home while you’re at work and
tending to your other responsibilities, and show them to you at YOUR leisure!
What’s your time worth? Your agent can save you plenty of time!
Making the “Right” Offer and Negotiating
A lot
of thought and analysis needs to go into your “offer”. Factors like comparable
properties on the market, recently completed transactions, location and the
seller’s circumstances all play a part in the amount of the offer. Your real
estate agent will help you present the most reasonable offer. In addition, your
real estate agent is an accomplished negotiator who can make sure the deal
moves smoothly to closing (making sure the deal doesn’t fall apart is
critical!)
Obtaining Financing
Most
real estate agents work closely with one or several good lenders. Your real
estate agent can help explain the myriad of loans (VA, FHA, Conventional, ARMs,
etc) and set you up with a good mortgage lender. This person will help steer
you through the application process and the paperwork maze. Most importantly,
this person should help get the best loan for you. Take advantage of your real
estate agent's team – which usually includes a good mortgage lender.
Due Diligence & Settlement
Due
Diligence is the process of trying to discover potential problems in the house
you are buying before you buy. These problems can range from structural or
cosmetic (for example, termites or leaky roof) to problems with the title,
taxes or homeowners association. Your agent has experience uncovering these
problems, and can save you a lot of money and grief. Furthermore, your agent
typically has preferred structural and termite inspectors that are a part of
her or his “team.” This inspector can help uncover any problems that may cost
you money and grief later on. Also, your agent will make sure you bring
everything you need (paperwork, the exact monies, etc.) to the settlement
table. They’re job is to make sure the settlement goes smoothly!
Building a New Home
Many
new homebuyers erroneously believe that if they buy a home from a builder
without going through a buyer’s agent, they will save money. The fact is, most
builders pay a commission, and if you do not use an agent, the builders simply
keep that money for themselves as profit. The worst part is, in this case, you
will forgo FREE representation!
Negotiating
without representation can be a disaster! Most builders do not fall under state
real estate commission laws, and therefore do not have to use approved
commission purchase contract forms. Most likely, the builders had their own
purchase contracts drafted in their own interest . . . NOT YOURS.
Most real estate agents are familiar with these contracts, and can recommend inclusions
are exclusions to save you trouble. Agents can
also help negotiate important points like “final walkthroughs”, contingencies,
and closing dates. Best of all, real estate agents have experience negotiating,
and may for example, be able get the builder to do upgrades at no additional
cost!
Be
certain to work with a broker that can act as your advocate. Most states have a
broker relationship known as a buyer’s agent. Avoid working with
agents that are neutral such as transaction brokers, dual agents or seller’s
agents and sub agents, as they do not represent you. Become familiar with the
types of agency available to you in your area and ask your real estate
professional to guide you.
I hope
this informational report was informative. As your local real estate
professional, I am constantly aware of “good deals” on the market, and can help
you determine what type of house and location is “right” for you. You can call
me at any time for advice, and please remember that you are under no obligation
or pressure of any kind. I would very much like to help you.
Best
Regards,
Lynn Byrne
Palmetto Realty Group
www.lynnbyrne.com
386-566-7503
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