Every real estate transaction is different, but there are a few things it’s helpful to understand up-front

One of the first things we’ll do to start your search is to sit down, probably over coffee, and have a buyer’s consultation meeting. That’s a fancy term for helping me get to know what you’re looking for and answering your initial questions about the process and next steps. We’ll cover a lot of ground, so here is a quick reference for some of the most common questions.

Help! What are the first steps:

I think I want to buy a house. Where do I start?

That’s simple. Let’s sit down for about an hour and chat. We’ll talk about how to find properties, how much money you’ll need up front, negotiations, contingencies, inspections, appraisals, and closing. Too much? Nope! We’ll break it down so it’s totally manageable. We’ll also go over the fun part - nailing down what you want in your new place.

Getting a loan is so confusing. What can you tell me about it?

Yes, loans can be confusing. We’ll talk through some general options based on your situation. There may be special loan types like loans for first-time buyer or loans for veterans, and we can go over some basics about loans in general. Beyond that, the best help I can be is to get you in touch with a qualified loan officer. The loan officer can do a quick pre-qualification, recommend the best loan program for your situation, estimate payments and costs to get the loan, and explain things like discount payments and APR.

When can I move in?

Once we’ve had our initial coffee, things can start to move quickly. We’ll go over a timeline during our first meeting, and can get going immediately. You’ll start working on getting pre-qualified, which will only take a day or so. I’ll start searching for great places for us to see. How long it will take to find the perfect place is the biggest variable. Once we find it, we’ll write an offer immediately and begin negotiations. That will only take a day or so to nail down in most cases. Once we’re under contract, you can figure on 30 to 45 days to be ready to move!

I’m new to the area. How to I find the right neighborhood? Oh, and where is the closest grocery?

We’ll spend a good bit of time talking about the city and the type of neighborhood you want to be a part of. We’ll drive through and tour homes in the areas you think you would like, and maybe some you haven’t discovered. We may even go from a run together through your favorites! I’ve lived in several parts of town and have explored many more. I may not know every grocery, but can certainly point you in the right direction.

Now let’s talk about commissions and representation:

How much commission will I pay?

As a buyer, you are not usually responsible for paying your agent’s commission at all. When a seller lists their home, they usually agree to also compensate the buyer’s agent. There are special cases where the seller won’t pay a buyer’s agent commission, but we’ll know and discuss that well in advance, and will decide how to move forward.

What does representation mean?

Representation means that you and I have formed a legal agreement and you have “hired” me to represent you as your buyer’s agent. When we sign a Buyer’s Representation Agreement, that establishes a “fiduciary” relationship, meaning that I am bound to work exclusively in your best interest, and you agree to work with me exclusively to help you buy your new home. You can learn more about the fiduciary duties here.

I’m confused. How do commissions really work?

When sellers list their home they form an agreement with the listing agent. The agreement specifies how much commission they will pay in total and how much of that will be shared with the buyer’s agent. The Real Estate Settlement Procedures Act (RESPA) mandates that there are no fixed commissions for real estate and each is agreed upon on a case-by-case basis, but it is determined by the seller and seller’s agent before listing. For example, the seller agrees up front to pay 6% of the sales price to their listing agent’s brokerage and that is to be shared equally with the buyer’s agent brokerage.

But I can save money by not using an agent to buy my new home, right?

Not typically! Remember that the seller and the listing agent have already agreed on the listing agent’s fees and the amount that will be provided to the buyer’s agent. If a buyer comes along that doesn’t have an agent, the listing agent is entitled to the full listing commission (unless another agreement between the seller and the listing agent has been pre-negotiated.

Wait! That’s not fair, is it? Yes, it is, because the listing agent becomes responsible for managing the entire transaction from both the buyer’s and seller’s side, while staying on the right side of the ethics issues that can arise from communicating with both sides of a transaction. In other words, it’s nearly double the work. Remember, the listing agent has signed an agreement to work in the seller’s best interest, not in your best interest as an unrepresented buyer. Representing both the buyer and the seller, while legal, can be an ethics quagmire. I only represent one party of any transaction.

So what do you lose for no extra cost to you? Skilled and knowledgeable fiduciary representation. As your buyer’s agent, I work in your best interest and your interest only!

I saw the house on somethingorother.com, what do I gain by using you as my buyer’s agent instead of calling about it directly?

Because information flows everywhere from all types of sources, it’s becoming less frequent that a buyer’s agent spots the perfect house for you and get the information to you before you see it on line. Chances are, you spend at least a few minutes a day combing the various home sites on your own and see it first. What’s the advantage of having a buyer’s agent? I will:

  • Schedule the viewings and coordinate to get you in to see the house

  • Go through the home with you with an experienced eye looking out for what you might not notice in the home

  • Help assess value versus price and help you determine what the right offer price might be

  • Call on experience and training as a skilled negotiator to help construct an offer that will help you win the bidding war in the way most to your advantage. Remember that we may be in highly competitive, multiple offer situations, where any edge can make all the difference

  • Prepare and explain all offer paperwork to you thoroughly

  • Guide you through the mortgage, inspection, and appraisal processes, coordinate with all parties involved, and assist with any re-negotiations that come from those findings

  • Manage the timeline to make sure that your closing is completed on time

  • Manage the drama that invariably creeps into a real estate transaction

What else can and can’t you help with?

What can’t you tell me about a neighborhood?

Fair housing laws and REALTOR® ethics guidelines prevent me from providing guidance and recommendations in a few areas that are very frequently asked about: neighborhood safety, demographics, and schools. This may seem like information an agent should provide, but there is good reasoning behind not doing so. To avoid even the appearance of steering a client to a particular area based on race or class, these topics are strictly off limits for residential agents.

That’s important information! Where can I get it?

Two of my go-to web site recommendations are crimemapping.com and greatschools.org. Both are excellent sources of information that will help you make informed decisions about whether a neighborhood is right for you.

I’m looking for a beach house (or moving to another city). You can’t help with that, can you?

Yes, I can still and would love to! As a professional I know to stay in my lane by not extending into a territory that I don’t know. That said, I can help with a purchase outside of my area by plugging into my network of Realtors and connecting you with a well-qualified agent who specializes in the area in which you are looking. I will contact potential agents, pre-interview them based on your needs, connect you with the best agent I can find to work with you, and stay in contact with you both throughout the process to monitor your progress and to assist in any way possible. In exchange, the agent I connect you with will compensate me for my time at no additional charge to you.

I need to rent for a while. Can you help me find a place?

I’d love to talk to you about your situation and offer any assistance I can. As a sales agent, I don’t concentrate on rental properties, but for buying clients looking for temporary housing, I’ll provide any assistance I can. Please contact me, but understand that sometimes the most help I can give is to point you in the right direction.

Information presented in this area is designed to peel back the layers of the buying and selling process. You will find detailed checklists and flowcharts that I share with my clients to help guide us through the process. Many of my personal strategies and methods are disclosed. For that reason, the materials presented here are reserved for clients who have signed either the “Buyer’s Representation Agreement” or the “Exclusive Right to Sell Listing Agreement.” If you have questions about either, please contact me!