1.
What is a Buyer’s Agent?
Buyers of property today have many more tools to work with than buyers
of just a few years ago. One of these tools is a "buyer’s
agent". A buyer’s agent is a real estate licensee who works
for you, the buyer. Pennsylvania law requires that a buyer’s agent
has to have the buyer’s interests at heart, will listen carefully
to understand the buyer’s needs, will work with vigilance to find
the right property, will help with negotiations on price and inspections,
and will make sure that the purchase process is as smooth as possible
for the buyer. The buyer and the buyer’s agent sign a contract
called a "representation agreement" that spells out the obligations
of each party to the contract, just the way a seller and a listing agent
would sign a listing contract to sell a house. When you sign a representation
agreement with me, you hire 20 years of real estate professionalism
during which I have been consistently the top agent in my office for
production and client satisfaction. Return
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2.
Do I have to pay my Buyer’s Agent?
In a word, yes. In practice, your obligation to pay your buyer’s
agent is most often fulfilled through the commission that is paid by
the seller to his or her agent. You do not need to have extra cash
to pay your own agent. In the rare case when the listing commission
is not split with the buyer’s agent, payment to the buyer’s
agent can be worked into the financing of the transaction. Return to top
3. Why should I buy instead of rent?
When you buy, you invest in a home, in a community and in yourself.
As you make mortgage payments, you build up your equity and increase
your assets. When you rent, you pay money to a landlord. You never see
it again. When you buy a primary residence, you receive tax benefits,
too. You may deduct from your income the amount of real estate taxes
and mortgage interest that you pay on that residence, so your income
tax bill is significantly smaller on April 15th. Return
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4. What do I have to do first?
Strategize with your agent. Choose a mortgage company, get pre-qualified.
Sometimes I advise buyers to actually apply for a mortgage loan. You
want to be in a position to win in a competitive marketplace. Think
about the requirements you have for a new home and articulate these
as clearly as you can to your agent. You and your agent should work
as a team. Check out newspapers, the internet, and sale signs. Your
agent will be scanning all those things along with the multiple listing
service, and she will be networking with other realtors to know what
may be coming on the market. Be ready to move quickly when the property
becomes available. Return to top
5. I have to buy a new home, but I need the equity from my present
home for the down payment. Do I have to sell my house first before I
can buy another? What if I sell but then can’t find the house I
like?
There is always some anxiety in this situation. You are not alone.
Many others face the same prospect. We will look at your finances and
determine how to approach it. Sometimes a swing loan can release your
home equity in cash for you to use. There are low down payment mortgage
programs that can solve the problem. Sometimes folks in this situation
will sell, then they will rent a while until the right house comes along.
Sometimes we are able to negotiate a longer than usual time to settlement
so there is more time to find the right property. Where there is a will,
there is a way. If your financial picture dictates that you must sell
before you buy, you may be assured that, as your buyer’s agent,
I will scour the landscape to find your new house. Return
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6. How can I be assured of getting the best interest rate?
When searching for the right mortgage, you want to consider several
things. The interest rate, although a major factor, is only one of them.
Other factors include: lender charges at settlement, how long the lender
has been in business, the lender’s references, the lender’s
reputation for service. You want to find a lender who will make it easy
for you to apply for your loan. For instance, a mortgage company will
send a representative to your home or to my office to take your application
instead of making you report to a banking office between 9AM and 3PM. Return to top
7.
How can I get to know a community and be assured that a house investment
there is wise?
The best way to get to know a neighborhood that may be unfamiliar to
you is to tour it. Take a walk at different times of the day or evening.
Say hello to people you meet. Ask them how they like living there. I
have found that census reports, internet-produced neighborhood reports
and police reports often do not give an accurate flavor for many communities
where the housing stock, quality of life, and vitality of community
spirit are attractive and strong. Return to top
8. How will I know what to offer for a property?
You and your buyer agent will perform the same kind of analysis that
a seller does when choosing an asking price. My clients and I search
for recent sales of comparable homes in the market place. Armed with
that information, we consider the property’s condition and location,
and we also consider how much my clients want the house. An offering
price becomes clear quickly. Return to top
9.
How will I know the property doesn’t have some hidden defect or
that it won’t be a "money pit"?
Every house, no matter how new or old, will need maintenance from time
to time. You know within yourself how much skill, energy or time you
have to devote to such tasks, and you will choose a house accordingly.
To be sure you have a good sense of what you are getting into, your
offer will include inspection contingencies. I always recommend a "property
inspection" contingency to my buyers so they will have a period
of time when a professional home inspector will look over the entire
property with thoroughness and care and will issue a written report
detailing its condition. Other possible inspections to have include
environmental issues like radon, asbestos, lead in water or paint, and
underground tanks, wood infestation, and water or sewer inspections
when the property has a well or a private sewer system. Many of these
inspections are commonly done and good inspectors are readily available.
Your choice of inspections may depend on the strategies in your offer.
10.
What if I don’t get my mortgage?
If I am your buyer agent, I will not let you get into a situation where
you won’t get your mortgage. Period. End of story. Rest easy.
