The spring real estate season is in full bloom. Low interest rates remain steady and the area is full of beautiful neighborhoods and homes. It’s exciting and daunting all at the same time. Here is some great information that buyers need to know before signing a contract on their dream home.
We’ve all been told to find a great real estate agent when it’s time to sell a home. That is very true, but what most people don’t realize is that it is just as important to utilize the services of a strong buyer specialist when purchasing real estate. Your home purchase will likely be your single largest financial transaction. When purchasing a home you have three options:
Hire an attorney. This usually only applies to a For Sale By Owner (FSBO) transaction. The attorney is paid hourly to handle only the contractual portion of the home purchase. You are left to navigate and negotiate lending options, disclosure requirements, inspections and repairs, appraisals and any other hurdles that appear before you make it to the closing table. Further, a high percentage of real estate transactions without Realtor representation or that deviate from the real estate commission approved forms result in lawsuits before or after the closing.
Work with the listing agent or builder’s salesperson. Real estate agents are required to work by a code of ethics. But remember, the listing agent was first hired by the seller to sell a particular home and that mission will always remain their highest priority. Builder’s salespeople may hold a real estate license and thus not held to that same code of ethics.
Engage a buyer specialist. This real estate professional works solely for the protection of your best interests as the buyer. They listen to your needs and desires and work to help you achieve your goals as opposed to simply selling you a particular home. Their loyalty lies with you as their client and you do not have to pay them a dime.
Who pays the buyer specialist?
Sales commissions are typically paid by the seller, builder or the listing broker resulting in no cost to the buyer. Buyer specialists protect the buyer’s interest throughout the crucial negotiating and closing process at no cost to the buyer.
What should I look for when hiring a buyer specialist?
The most important thing to look for is a willingness to earn your business. A professional and well-prepared buyer specialist should invite you to their office for a face-to- face meeting to discuss your situation and provide education on the home buying process. A good buyers agent will review the entire process as well as sample paperwork with you before you start your home search so you can move quickly once you have found the perfect home.
So, is a buyer specialist a salesperson or a consultant?
One of the biggest misconceptions about a buyers specialist is that they are a salesperson. A salesperson employs a high-pressure tactic to get the sale they want. In reality, a buyers agent is a consultant. They provide the process and details so you can make an educated decision.