How to Avoid the 10 Most Frequent Buyer Trap

Why You Need a Buyer’s Agent?

 

For most people, buying a home is probably the biggest investment you will ever make.

And it’s not one you’ll make every day so it’s easy to make some costly mistakes – like paying too much, losing out to a competitive buyer, or buying a home that doesn’t fit your family’s needs.  A well represented buyer can avoid the many pitfalls of home ownership.

 

First and foremost – always have your own Buyer’s Agent to represent you.  It costs you nothing and saves you more than you can imagine.  The worst mistake buyer’s make is using the Seller’s agent – thinking the listing agent will be able to get them the best price.  This is so wrong!  And believe it or not, illegal in many states.  The listing agent has a financial and fiduciary duty to the seller.  His job is to get the best possible price and terms for the house to benefit the seller.

 

In days of old, buyers used to think listing agents could get the property cheaper because they cut their commissions to do so.  In today’s’ market, commissions are already at an all time low and if there’s any  cutting to be done at all, it will be done to help the seller – not the buyer.

 

A well represented buyer will be able to take the advantage of the following:

 

  • A professional real estate agent will work purely on your behalf to secure the best price and terms for this purchase. Your agent will do all the homework for you before you decide to even make an offer.

 

  • A knowledgeable agent will know the current market prices in your area and be able to advise on the purchase price.  She will help you through the pre-approval process so you’ll know how much you can comfortably afford to pay for a home.  Having gone through this step early, you better know what you are searching for and can make your offer stronger with pre-approval attachments.

 

  • Your agent will make sure the lender gives you a free pre-closing good faith estimate so you’ll be aware of all costs that may pop up during the Escrow period.

 

  • A buyer’s agent will know the price that other properties in your area have recently sold for and will know if the price of your choice is correct and make sure you are not paying too much.

 

  • When viewing a potential home with your agent, she will know what to look for in various properties.  She will seek out potential problems and point out things you ought to know about. Your agent may know, from memory, of any problems this property may have suffered from in the past.  Many local agents have excellent recall on local properties with problems. 
  • Your agent will also point out anything that might have been concealed or covered up to enhance the sales price to avoid any undisclosed fix-ups.  She will make sure that your purchase is contingent on the results of a professional property inspector who will point out all possible fix-up problems and often give you a rough idea of the cost of such repairs.

 

  • A buyer’s agent will prevent you from buying the wrong home.  Finding the perfect home is next to impossible.   It’s always a series of trade-offs.  Your agent will have done her homework on what you are looking to spend, how much time and money you’re prepared to invest in remodeling, or whether the home needs to be close to  your work or any preferred schools.  She’ll point all these issues out to you with each home you visit.

 

  • Your agent will be able to lay her hands on tax information and other charges that you might be responsible for after a sale has closed.  This ensures no hidden surprises after your purchase.

 

  • When a sale is eventually agreed upon, your agent’s knowledge of the Escrow and inspection process will prove to be invaluable.  She will make sure all legal time constraints of the contract are met and no surprises come up to delay the escrow process.

 

  • Your agent will be able to advise you of any strange or unnecessary Escrow charges that may appear on you statement.

 

 

Don’t forget, the buyer does not have to pay commission charges to anyone when purchasing a property.  So the buyer gets all this help and information absolutely free.

 

If you’d like to know how we can do all this for you, please contact us at: reradie@gmail.com