Archive for February 17th, 2011

Why it is Important to Have Buyer Representation?

As a buyer, having a Realtor represent you on a purchase is more important than you might think. You may have heard this before but it is true!

Here is the scenario if you just go out and try to purchase without having representation:

You go on the internet and find the perfect home. Now you drive over to the home and see a realtor sign. You call the number on the sign and you ask to see the house. The realtor will jump at the chance to sell the home and make the full commission. Nothing wrong with wanting to make money, that is why we are in the business! Now you get to see the house and you want to make an offer. You sign the papers with the agreement to have a lender approval letter in hand. Only problem is that when you go talk to the lender you find out you are not qualified to buy the home. This is a big set-back and you are extremely disappointed.

But what if you had qualified? Well that brings up some different issues like who does the realtor represent? The realtor has a signed seller representation agreement but if they sign a buyer representation with you they now become what is called a “dual agent”. This is where they no longer represent either one of you but are basically processing paperwork for both of you.

If you want to avoid that uncomfortable feeling that you are suddenly not getting the best deal here is what I recommend. Find a realtor that you are comfortable with ( this may take a few interviews but always remember they work for you, so treat it like a job interview and you are the boss) Once you find a realtor, a good one is going to tell you to get yourself pre-qualified with a lender before  you even go out looking at houses. This helps to avoid the first scenario’s disappointment.

Once you have found the perfect house your realtor will write-up the paperwork and help you to negotiate the best price. They do this by showing you all the recent solds in the area that are comparable to help ensure that your offer is in the right range. The realtor will also recommend that you get an inspection and can help set that up for you. They will also coordinate with your lender, title company and the listing agent,  items that need to be taken care of in a timely manner so that you will close on time. (Nothing is more frustrating than having the closing moved- out because paperwork is missing or inspection items were not taken care of.)

The very best part about having buyer representation with a realtor: it is free! The seller pays the commission, you pay nothing (ok, so it is included in the price so you pay long-term but it is the seller who pays up-front) Please also keep this in mind: the realtor who has driven you around and has done a lot of hard work and countless hours on your behalf, does not get paid until after the closing. It is very frustrating for a realtor to work hard only to have a buyer go to an open house and get talked into signing an offer by the listing agent. So please show your buyer rep the same fiduciary loyalty that they give to you as your buyer rep! And no matter what, always have buyer representation!

For more information regarding buyers representation please go to my website (no sign in required) : http://www.BoiseRealEstateChick.com

%d bloggers like this: