The Complete Home Buyers Handbook

Insider's Guide to Saving Money &

Eliminating Risks When Buying Your First Home!

Chapter 2 – Finding A Realtor

If you are like many people, chances are that you’ve looked around different neighborhoods, saw a few homes that were for sale, maybe visited an open house or two, and then felt stuck.

What is the next step? Approach the homeowner with a potential offer? Visit a realtor for more information and help with the purchase?

Finding the right realtor when buying a home depends on what you are looking for in a home. You may have to visit several realtors before finding one that listens to your wants and needs.


After all, you could possibly be paying them a commission once you have found a home, so you should be comfortable working with them during the house hunting process.

Choosing A Realtor

There are a few ways to find a reliable realtor.  For example, you can:

• Ask friends and family for referrals.
• Search online for approved realtors.
• Attend a few open houses and meet realtors personally.
• Visit a local real estate office, or
• Look for local realtors in your neighborhood by paying attention to for sale signs in the neighborhood.

 

 

Asking plenty of questions before looking at houses may seem like a lot of work, but when you visit a realtor for the first time, you should think about questions that will help you get to know this person who is going to help you find your dream home.


The five best questions to ask are:

1. Are you a certified realtor?
2. How long have you been in the real estate business?
3. Which neighborhoods are you the most familiar with?
4. How many homes do you have that will fit my needs?
5. What is your typical commission on a home in my price range?

Once you have asked these questions, you should be looking for honest and complete answers, good communication, and honesty. These are questions that the realtor should have practice in answering and should not have to give you a standard ‘salesperson’ answer.

If you feel uncomfortable, remember that you are under no obligation to continue with this realtor unless they have some good property matches to show you, or have exclusive rights to show properties that you are interested in.

Normally, if a realtor does not have properties that fit what you are looking for, they will recommend you to another realtor in the group. This is also a good sign because it shows that the group is looking out for your interests and the interests of its employees.

You should also pay attention to:

• How well your realtor listens to what you are looking for.
• How well they understand current real estate law.
• How many other clients they seem to have.
• How they speak to their co workers.
• How often they communicate with you on the phone or email.

 

 

In the end, you will have to be the judge of the real estate agent. If they know what they are talking about, can find out the information you need quickly, and are willing to take the time to listen to what you need, then you should work very well with them.

In some cases, you may be asked to sign an agreement that states you will only be working with a specific real estate agency or agent when looking for a home. You are under no obligation to sign this paperwork and you should only do so if you feel very comfortable.  

While these agreements are not totally binding, it could make buying a home more difficult down the road. Only sign agreements if you feel comfortable.

During your search for a real estate agent, you will find a variety of agents that will want to work with you. These include:

• Experienced agents
• New agents
• Pushy agents
• Absentee agents, and
• Hard working agents

While all real estate agents have different personalities, you will have to decide which ones you will want to work with when looking for your new home.

Experienced Agents vs. New Agents

This is an age old debate that should be addressed. While an experienced agent may have sold more homes and earned more commissions, new agents can be just as helpful and need to get some sales under their belt, which may prompt them to work harder for you.

While you should ask about their experience, you should take into consideration other traits such as the ability to listen and the ability to only show you homes in your price range.

Experienced agents and new agents have been trained in a similar fashion and only have their personalities to bring to the table.

There are experienced agents out there who will drag their feet because they are over confident or they are not as interested in their jobs as they once were. Experienced agents may know more about different neighborhoods, but some of them are not as proactive as they used to be.

You should not let inexperience deter you when looking for an agent. Many times new agents will work harder because they want to gain a reputation that they can use to build confidence in their future clients

Pushy Agents

Unfortunately, you will meet real estate agents that will want to sell you more home than you need. In an effort to earn larger commissions or to sell those properties that are more difficult, many agents will try this tactic.

This is where you will need to stand firm. You do not want to waste your time looking at homes that are beyond your price range unless you can find a way to lower the price.

 

 

While looking at possible homes is exciting, this will not last long as you will grow weary of spending all of your available time looking for a home. If an agent keeps showing you homes that are out of your price range, then you should consider finding another agent. 

Absentee Agents

Absentee real estate agents are those agents who show you a few homes and then disappear for a few weeks. These agents may be overworked, may not be able to find a home in your price range or neighborhood, or have higher priced commissions to find. Whatever the reasons, this is unprofessional behavior and should be rectified immediately, especially if you need to find a home quickly.

If an agent does not have homes in your price range or neighborhood, they should recommend another agent in the group. Agencies never want to lose customers. If your agent does not do this, find a new one.

 

 

Even agents that are overworked have time to make a quick phone call. If you do not hear from your agent in a week after your last meeting, find another agent.

Hard Working Agents

These are the best agents to find when you are buying your first home. If you find an agent like this one, do not lose them. These are the agents that will follow every lead, pass your wants and needs to another agent, and try their best to find you a home. You should expect to see a handful of homes when working with an agent like this one.

Now that you know more about what to look for in a real estate agent, you should feel a little more comfortable about working with one. They can be an invaluable source of information when you want to know more about homes, neighborhoods, and other questions about the communities you are looking at.

When looking at homes with your real estate agent, you should ask questions about the home, the neighborhood, the city or town, and any other questions you need to know in order to make an informed decision. Part of your real estate agents job is to research homes and neighborhoods so that they can answer questions that may come up.

(Whew...where to stop on this subject! Keep reading...I promise it is informative!)

Preparing To See Homes With Your Realtor

Create A List

 

 

Once you have found a realtor you are comfortable with, you will want to make the most of your time when house hunting. Giving your realtor a list of what you are looking for will help narrow the search and save everyone some time. Your list should include:

• Your price range
• Number of bedrooms you want
• Number of bathrooms
• Size of property
• Basement (finished or unfinished)
• If you want a porch, patio or balcony
• Central heat and air conditioning
• Garage
• Neighborhood, and
• Any other amenities you would like

Giving your real estate agent a list of your preferences will allow them to spend more time researching homes that fit the criteria. You should list these amenities from greatest to least important because no home is perfect and you will not get everything you want or need. Let your agent know that you are flexible, but that you really want to concentrate on certain items when looking for a home.

Viewing Homes

When looking at homes with your agent, be sure to ask any questions you may have. While these questions may seem small, they may be important to your happiness. Common questions people ask their agents are:

• How old is the home?
• How many owners has the home had?
• What kinds of renovations have been done to the home?
• How old is the plumbing?
• How low are the sellers willing to go?
• How old is the carpeting and flooring?
• How old are the windows?

While your agent may answer some of these questions before you ask them, you should ask any questions that may influence your decision to buy a home. If you do not want to put too much work into fixing up the home, you may want to buy a home that is ten years old or less.

If your agent does not know all of the answers to your questions, they should be able to find out and will give you an answer within a day or two.

Taking Pictures

One of the best ways to remember the homes you have seen is to bring your camera and take pictures. Get permission from the agent first before taking pictures of another person’s home.

Many times, after looking at a few houses, you will forget how big the kitchen in home number two was in comparison to home number five. Having pictures will give you a better idea of the square footage and how much room you will have to work with.

Narrowing Down Your Choices

After a few weeks of viewing homes that fit what you are looking for, you should be close to finding a home that you will want to make a bid on. If you have other homes you would like to see or you have changed your mind as to what you are looking for, you should tell your agent so that they can look for other homes.

Many times, if a person likes the neighborhood but not the home they were shown, they will want to see other homes in the neighborhood that are for sale. You should ask to see all of the homes available in a neighborhood that you like.

If you are still not finding a home that you like, you may need to change the neighborhoods you are looking at. While this can seem disappointing, your real estate agent will be happy to show you homes in different neighborhoods. Sometimes if you compare homes to one another, you will find redeeming qualities in a home you have already seen.

Once you have found a home that you like, you should make an offer. Contact your agent as soon as you can so that they can draw up the paperwork, contact the buyer’s agent, and make an offer before another person does. Make an offer as soon as you can in order to avoid a bidding war.

Bidding can be long and drawn out in some cases. If you do not have the time to wait out a bid or if you cannot bid any higher, then you may be looking for another home to purchase. While this can set you back, you should try to stay positive and find a home that is right for you.

Your agent should be there to guide you along during this time. Ask all the questions you have to before making an offer on a home.

Information Realtors Should Tell You

There is plenty of information that realtors can tell you about the homes you will be viewing. Things they should tell you include:

• The price of the home
• The age of the home
• Any renovations that have been done
• Any other Issues with the home
• Property taxes
• Community dues
• Schools
• Neighborhood crime rates, and
• The median age of those who live in the neighborhood

Usually, if a realtor does not have the information you request on hand, they will be able to look it up once they are back at their office.

You should be able to find out all the information you need to know in order to make an informed decision about buying a home. Realtors are required by law to give you information concerning repairs, damage, and the history of a home.

This includes any incidents that have occurred inside the home such as criminal activity, fire, and other events.

You can also do a little research of your own by using the Internet, which has become a wonderful tool to use when searching for a home. You can research past events that have taken place in the neighborhood, the home itself, or the town where you want to live. Knowing a little history may prompt you to look elsewhere or make an offer.

Other information realtors can tell you include:

• Home owner price reduction (your realtor will talk with the seller’s realtor once you have made an offer or want to make an offer to see how low the owners will go to sell the home)
• Prices of other homes in the area that are comparable to the one you are looking into buying
• How quickly the owner wants or needs to sell their home
• How much you will have to pay in property taxes each year, on average
• Other taxes in the area

Your realtor is a person that should be well acquainted with the neighborhoods you are looking at when buying your first home. Don’t be afraid to ask many questions.

Working With Seller’s And Buyer’s Agents

As a home buyer, your real estate agent is considered the buyer’s agent. While some people will forego hiring an agent at first when looking for a home in order to save money on commission costs, they will usually end up hiring an agent to:

• Handle negotiations with sellers
• Do paperwork, and
• Survey neighborhoods

It is in your best interest to hire an agent in order to make buying a home a much easier, and faster process.

Negotiations With Sellers

Most people who sell their homes are also working with an agent. This agent is known as a seller’s agent. If you choose not to hire an agent, you will be dealing with a seller’s agent who is looking out for the home owner’s interests, and not yours.

Sometimes, though, the seller’s agent and the buyer’s agent can be the same agent. This means that your agent is looking after the interests of everyone involved. This is a rare occurrence, and it is best to hire a real estate agent that can negotiate with other agents in order to get you the best deal on a home.

Negotiating with agents can take a week or more depending on how high you are willing to go and how low the owners are willing to go. This can become a complicated game once you introduce home inspectors.

After an initial home inspection, if you feel there are repairs that should be made prior to the sale of the home, or if you want a price reduction because of the repairs you will have to make, you will have to negotiate with the owners to settle on a fair price. Without an agent, you will have to do all of this work yourself.

Paperwork

When buying a home, there is a lot of paperwork that must be completed before the closing. This paperwork can include:

• Offers
• Counteroffers
• Home inspection reports
• Home appraisal reports, and
• Fixture lists (Items that come with the home and items you would like removed)

Filing the paperwork is not difficult, but it can take some time. Working with an agent will save you time and money when creating and sending out various paperwork.

Survey Neighborhoods

Another advantage to hiring an agent is that you will not have to do as much legwork in the beginning. You may have a few neighborhoods in mind, but you will be able to leave it to your agent to find homes for sale and setting up appointments to see them.

This is another time saver especially if you have to work during the week. Taking time from your busy day to call other agents and homeowners to set up appointments will distract you from your other daily duties.

More Reasons To Hire A Real Estate Agent

There are several other reasons to hire a real estate agent.  These include:

Peace Of Mind

The bottom line is that as a buyer, a buyer’s agent is the best resource when it comes to finding and making an offer on a home. While a seller’s agent will be able to tell you the basics about a home, they are working for the homeowner.

They will not try to get you the lowest price for the home.

If you enjoy negotiating, then working with seller’s agents might be for you. But if you are like most people, hiring an agent to work on your side will make the entire process more enjoyable and worthwhile in the end.

Wealth Of Knowledge

Your agent will be very knowledgeable about negotiating the right price for your new home, they will be able to help you decide where you want to live, and they will be able to guide you in buying or walking away from any property you are not sure about. This is why it is so important to talk with your agent and ask as many questions as you can before buying a home.

Confidence

If you are having doubts about purchasing the home you have made an offer on, then you should tell your agent right away so that they can postpone the offer made and help you reexamine what it is you are looking for in a home. Many times the initial shock of being a homeowner can be overwhelming.

Sometimes talking with your agent is enough to resolve your feelings. Other times, you may need to see a few more homes before making a decision. Your agent will be able to give you practical advice during this time.

Next:   Chapter 3: Watching the Market

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