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Real Estate Professionals
For most of us, the purchase or sale of a home is one of the largest transactions we will ever be involved in. In fact, most people find the process of home buying more intimidating than the fear associated with actual home ownership. What are some of the benefits associated with using a real estate professional? How do you select a real estate professional? Hopefully, you'll get some answers and helpful insights here below....
Should We Buy On Our Own or Use An Agent?
When you first begin looking for a home, you’ll probably ask yourself..."Can we do this on our own? Do we really need to use a real estate agent?" The answer is yes, you can do it on your own. There is no law that prevents you from buying property without professional assistance. You can search for homes, set appointments, and even negotiate on your own. The real questions are "Do you want to do it on your own? Do you have the time, energy, sources of information and contacts to do the job yourself? If you chose to do it on your own, would the results be as good or better than they would be if you had professional assistance? Would it have gone smoother? How much would it have cost you in personal time? Would you have purchased for less if a real estate agent were involved?"
There is a misconception among many homebuyers that by using a real estate agent, they will be subject to paying a commission. In virtually all situations, this is not the case. The commission an agent earns for the sale of a home is paid by the seller, not the buyer. If you went to your local car dealer and bought a new car, you wouldn't expect to pay the commission directly to the salesperson. The same applies when you buy a house - it is the seller of the item - in this case a house - that is responsible for paying to have it sold.
If you do decide to "do it on your own," your choices will be somewhat limited. The only homes that you can buy without any agent assistance are those that are "For Sale By Owner" (FSBO)…usually a small percentage of the market. These are homeowners who, for whatever reason, have decided not to use an agent in the sale of their house. It may be because they think they can get more return by not paying a commission, or it may be because there was no agent who would take their house listing at the price they demanded. Many times you will find the selling prices of FSBO homes are equal to - or higher - than those listed by agents. A problem arises when, as a "do-it-yourself" house buyer, you need to make a determination whether or not the house is worth the asking price. How do you decide? There is too much money potentially involved to make an uninformed decision. In this case, you need to either secure an independent appraisal to determine a realistic price range for the property or rely on your own market research to assess the value of the property.
A common mistake many buyers make is to graduate from the FSBO selections
into the "listed" market by checking advertisements and calling
the listing agents directly or visiting open houses. More often than not,
you will not save money by using this strategy. The seller is still going
to pay a commission and you run the risk of ending up with no representation,
since the listing agent represents the seller.
ON YOUR OWN |
WITH AN AGENT |
| Try to locate a For Sale By Owner (FSBO) | A much wider choice of properties...MLS |
| You do your own market comparison | The ability to get a comparative market analysis to see how the price of the house compares to the current market |
| For better or worse, you are your own representative | Your agent represents you in the negotiations |
| You are completely in control of the pace of the process | Your agent follows up on the details of the transaction |
| You locate inspectors, title companies, etc. | Your agent can offer suggestions for home inspection services, title companies, etc. |
Agents…Who Represents Whom in a Real Estate Transaction?
Before working with real estate brokers or agents in buying or selling a home, you should know that their duties depend on whom they represent. Legislative changes defining new relationships between Texas agents and their clients went into effect in 1996.
There are four types of relationships defined by law that a broker or agent can have with you. It's important to understand the terms used to define these relationships.
If you are a prospective seller or a prospective buyer, you should know that the broker who lists the property for sale or lease is the owner's agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer's agent represents the buyer. A broker may act as an intermediary between the parties if they give consent in writing. A broker can assist you in locating a property, preparing a contract or lease or obtaining financing without representing you. A broker is obligated by law to treat you honestly.
When the agent represents the owner, the broker becomes the owner's agent by entering into an agreement, usually through a written listing agreement. A listing broker can assist the buyer, but does not represent the buyer and must place the interests of the owner first. Buyers should not tell the owner's agent anything they would not want the owner to know because this information must be disclosed to the owner.
A broker may act as an intermediary between the buyer and seller if each party gives consent in writing. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, state intermediary obligations. A broker who acts as an intermediary in a transaction:
- Shall treat all parties honestly,
- May not disclose that the owner will accept a price less than the asking price unless authorized by the owner in writing to do so,
- May not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer,
- May not disclose any confidential information or any information that a party specifically describes in writing not to disclose unless required to do so by the Texas Real Estate License Act or if the information materially relates to the condition of the property.
With the parties' consent, a broker acting as an intermediary between the parties may appoint licensed agents to each party who are associated with the broker to communicate with and carry out the instructions of each party.
If you choose to have a broker or agent represent you, you should enter
into a written agreement that clearly establishes both of your obligations,
including how and by whom the broker will be paid. You have the right
to choose the type of representation, if any, you wish to receive. Your
payment of a fee does not necessarily establish that the broker represents
you. If you have any questions regarding the duties and responsibilities
of the broker, you should resolve these questions before proceeding further.
How to Select a Real Estate Agent
There's no simple formula for selecting a real estate agent. Making this important choice requires time, planning, and a careful analysis of what each agent has to offer. Typically, you start by getting referrals from friends or by contacting local agents and setting up interviews. You shouldn't go blindly with a referral. What works for your friend may not work for you. Take the time to interview candidates.
The Interview Process
If you are buying a home, contact two to three agents to set up interviews. In the interview, look for an agent who asks pointed, specific questions. That's a sign of someone who is already thinking about your situation. Make sure you feel comfortable being around this person - you will be relying on his or her expertise.
Communication
Do you really want weekly, daily or hourly reports from your agent? Are you comfortable with letters, phone calls, or do you want to discuss matters in person? Determine how much communication you want, then find an agent who will give you the attention and time you desire.
The Support Team
Agents work with a team of professionals in many fields, including title, escrow, mortgage, home inspection, pest control, carpet cleaning, etc. you are not obligated to work with an agents team, but often it is the optimum way to go. Agents have built strong relationships with their "teams" and can often get expedient service or cash in a favor for your transaction should a crunch or problem arise.
What to Expect from Your Agent
- An understanding of your needs.
- A willingness to work with you until your needs are fulfilled.
- To have your best interests represented.
- A sense of professionalism.
- A familiarity in the area in which you have an interest.
- A familiarity with the price range in which you have an interest.
- To be treated as a respectable client and not as a transaction.
Realty Mortgage/DFWHomeLoan
1280 South Main Street Suite 102
Grapevine, TX 76051
817-410-1120 metro
Consultant@DFWHomeLoan.com