Ok, we're calling the broker this week, and if we get approved, we will make an appt. with a realtor. We won't have a buyers realtor. So, here's where I'm confused what to do. The location that we're looking, there is a big real estate group that we've heard good things about. Their signs are everywhere around there. Now, if we go thru them will it be bad if we try to buy one of their houses?? Will they try to screw us?? Or should I go thru another agency since the houses we've looked at are from that particular agency? Does that make sense?? Also, what kinds of things should I look for when I go meet w/ them?? What kinds of things will we have to sign, and what kinds of things should I not sign? I've never done this before, and I don't want to sign my kids away or anything. Can you just give me advice to get me started?? this is all a little premature. We may not even get approved, or decide to postpone looking until the spring. But, I like to have everything set in my mind before I do anything like this. Thanks for any advice you have!!
tracy, i think it is imperative, if you think you need a realtor, to get a buyer's broker. They will work in your best interest. A seller's realtor is exactly that, someone working for the seller's best interest.
Also, if you do get a buyer's broker, they will want you to sign a exculsivity(sp?) agreement. Those are usually for 90 days. I would bargain them down to not signing it at all or no more than 30 days. That way, if they are slacking in their performance, you can find someone new.
well, like I said, I'm really not sure what I'm doing. The broker that we're dealing w/ is really good, and he told me that he's going to set us up w/a broker in that area. Is that the same thing?? He told us that he's going to be the one doing the loan, but he's hooking us up w/ a broker there--and I didn't thing about it til after--to ask what that other broker is going to be for. We're moving a county over, because prices are so much less, and we have family there. Our broker is in this county. He comes really highly recommended, and seems to be determined to help us. Am I making any sense?? LOL
Ummm. i think so. Sometimes, real estate agents are called brokers. But a broker can also be a mortgage broker. On top of that, a real estate agent that has undergone, somewhat specialized training is called a Realtor which is like an agent with a master's. So let me rephrase what i'm saying. You will need to find a good buyer's real estate agent. They have to "represent" the interest of the buyer, just like an attorney. Does that make sense?
I have to kindly differ with you here... A real estate agent is someone licensed to sell real estate....a Realtor is a real estate agent that is a member of NAR (Nat'l Assoc. of Realtors)...doesn't matter the training. The day I passed my test and signed with a broker, they had a requirement that I join NAR, which made me a Realtor--no experience necessary. In TX, a Real Estate Broker has met significantly more education requirements that allows them to sell real estate without anyone's supervision - they can own their own business. An agent has to have a broker who oversee their activities, and are held responsible for their errors, etc. Along w/the education, a broker must be a licensed agent for at least two years before becoming a Broker. My suggestion is to contract with your own personal agent/realtor/broker...they will look out for your interests 1st (although they still have a fiduciary duty to the seller). I have signed buyer's agents contracts for anywhere from 1 day to 90 days.
Tracy - (I keep saying in TX, because diff states have diff rules). Here, mortgage brokers and real estate agents have a you scratch my back, I'll scratch yours agreement. They cannot pay each other for referrals. So, if a real estate agent sends business to a particular MB, they will tend to refer people that come to them first to that RA. You are in no way obligated to use who the MB refers you to. Ask friends, family, etc. in your area who they have used, why the liked them, etc. Basically, give the RA a job interview, and find one that meets your PERSONAL needs, and has the personality you like. Discuss your concerns with signing a long term agreement with them - they will work with you for your business. And remember, they should receive their commissions from the seller. Good luck!
are you sure you really want to go through a realter/agent? have you considered looking at fsbo's? i'm a rela estate investor, so i'm used to not dealing with agents. an agent has the obligation to the seller to market it at the best possible price, do a market analysis etc. that means, if you're looking to buy at fair market value that might be the way to go. if you're looking for a deal, it's not. if you lock yourself in with a buyer's broker, you can pretty much forget any 'for sale by owner' properties. or at least, if you do put an agent in the middle and the seller accepts, you will pay more for the property, because they have to pay commission. now is the time of year, where properties sit and sit and there're a lot of anxious sellers. you could really strike some bargains now. go to open houses in the area you're planning to buy to become familiar with the neighborhood values. check out www.domania.com to get some recent sales prices. if you make an offer, make sure you have an inspection clause in it, which gives you time to get out of the deal, if you wake up tomorrow and change your mind. make sure you have a real estate attorney prepare or look over the contract. just some thoughts
Tracy Both humblemarc and jlynn have given you good information so far, I just want to add my "2 cents worth". Do not sign any agreement with a real estate person (no matter what they call themselves), unless they can be exclusively a BUYER'S AGENT for you. If they will not or can not do that, then they will be required by law TO REPRESENT THE SELLER in any transaction. That means also that any advice they give you in negotiations has to be for the BENEFIT of the seller not you. Only by having a buyer's agent can you have a real estate person who will represnt your interests. This is true in all states that I have and do conduct business in. fla-tan
I probably pretty biased here, being an agent (LOL)...but for someone who is not real experienced in buying and selling RE, did you know that FSBO's have the highest rate of law suits? You run into significant problems with sellers hiding defects, deceptive trade practices, suing for contract execution if one side gets mad, and the list goes on. If you want to look at FSBO's as well, it is possible to exclude those from buyer contracts, as well as negotiate the seller to pay the commission anyway. Been there done both. Also FSBO's should be just like credit repair - empower yourself with knowledge! Good luck!
jlynn, i agree, that things can go wrong with fsbo's, but that's why it's important for a buyer to have an attorney on they side. someone to check the contract, make them aware of disclosure documents. as to commission on a fsbo, yes, it can be included, but in the end commission always comes out of the buyer's pocket. it's the bottom line, that counts. if i, as a seller, have a house for sale at 120k and know, i have to walk away with 100k to make it happen. i may be willing to go down to 103k, with me paying 2.5% closing cost, if i deal directly with a buyer. if the buyer brings an agent, the lowest they could negotiate me down to would be 107k, which means the buyer will pay 4k more. also, if you have an agent in the middle, it would be very difficult to find out the real reason why someone's selling. what is their need and how can you fullfill it? maybe it's not so much the money, but the speed of closing? maybe they're concerned about the landscaping , that they've spent years and years on. you can assure them, that you absolutely adore the yard and maybe they'll take a lower offer. that personall contact is missing with an agent in the middle. i'm sorry, flynn, i know agents don't want buyers to really think about these things. and i agree this is not for everyone. most people are probably better off having an agetn in the middle, who will take care of all the little things and get the deal to closing. i do believe, that a lot of agents work hard for their money. but, it seems, someone on this board would be a diy person and would be willing to educate themselves enough to really get a deal.
Thanks for all the advice. I'm meeting w/ the broker today, just to find out if we even qualify. I won't even speak to a realtor until we get pre-approved. That's just setting myself up for disappointment. We briefly discussed FSBO, but I think it's a bad idea in our case. This is our first home, and we don't know what we're doing. I think if we'd gone through this process before, it may be something to consider. I have to watch and learn, not just jump in and do!! I'm really concerned w/ our lack of cash. I can't see how anyone can buy a house w/out $$$ in the bank. The broker wasn't concerned then. We'll see what he says today though. He could change his tune! Wish me luck. I'm so nervous!!
tracyb0313, I don't know what price range you're looking for, but at least ask about FHA. FHA is not score driven, even though you have adequate scores, but is a little easier to get. Charlie
We don't have the $$$ to put down for FHA yet. That's what we were going for, so we set up a meeting last month w/ a broker to find out what we needed to do, how much $$$ etc. We were looking at trying to get in a house by the end of summer 2003. I figured that would give us plenty of time to get our ducks in a row. He told us "why wait?" he could do a MSHA/RD loan (Maine State Housing Authority) which has similar guidelines to FHA about your CR's. That's what we're trying for. I never thought I'd get our CR's as clean as they are. I have no derogs, and dh has an old one showing on EQ and EXP, that's due to come off in 13 months. His scores went from around low 500's, to the 690's. He had recent derogs that the broker said we could explain, but they are gone now, so no explanations needed. I'm not worried in the least about our reports, it's our debt/income and lack of available cash. We'll see what he says today, and if we have to wait 6 more months, so be it. At least the ball is rolling, and last year at this time, I NEVER thought we would even be this close. It's a step in the right direction anyway!!!
tracy, You don't have to get an attorney on your side when buying. Real estate agent and his/her broker will provide you full and professional service at NO COST for you. Do not pay attorney's fees.
platinum, if you've read my posts, you would have realized, that my recommendation of an attorney was for the scenario of buying without an agent for the first time. in that case it would be foolish to want to save the couple of hundred $, if you don't know what you're doing. if you have an agent you're paying for the expertise of the agent, who will look out for you and take care of all the details. and to all of those, that will be screaming: but you don't pay for the agent, the seller will: in the long run the buyer will always pay for the commission, because the price of the property is structured to include the commission.
not neccesarilly....the FSBO always wants to get best possible price...they are not cheaper...I mean they are CHEAP when it comes to pay for professional service...
