Use a Buyer's Agent to Buy Your Home

Many people are not taking advantage of the vast knowledge of a good real estate agent when they begin looking to buy a house. There's nothing wrong with going out on a pretty Sunday and visiting some of the many open houses in town. Some people make this part of their weekend afternoons. After all, its quite a lot of fun to roam around looking at beautiful homes all dressed up and waiting to show off their neat features. But looking on one's own is far from transacting on one's own.

My first suggestion for using an experienced agent is just that-they need some experience. This is not to say that all effective agents have to be "heavy hitters," just that they need to have been in business for long enough to have established working and satisfactory relationships with some good inspectors, repair people, appraisers, mortgage company people, and closing attorneys. Why? Because, having been an agent for over eight years, I know that my relationship with my mortgage companies helped me close some deals that would have been a nightmare had they not been there when we hit snags in the loan process. It's not knowing a company but knowing the people who work there that makes deals proceed more smoothly. The same is true with my inspectors and appraisers. I knew that I could call two of them up on a moment's notice and that they'd do everything they could to accommodate me for my client at short notice. They knew that I would continue throwing business their way if they performed the best service in the shortest amount of time.

Agents make no money whatsoever on helping buyers. It's called "buyer's agency," and there has to be a form signed by the agent and his or her client when contracts for purchase are given to a seller. Some agents get "stiffed" by buyers who use their services, then suddenly disappear, buying on their own from a FSBO (for sale by owner), or let themselves be talked into dealing exclusively with the agent for the seller. That seller's agent will get the entire commission without having to split with a buyer's agent. It's unscrupulous and there have been lawsuits over this, but it sure happens.

Shop for agents the way you'd shop for anything. Ask people who they have used and find one that way. Don't just fall for all the glitzy ads on bus stop benches or grocery carts. I wouldn't generally advise using friends who are real estate agents but if you do make it clear what you need, what you expect and how the two of you need to work together. Once that's decided, tell the real estate agent just what type of property you're looking for, the price range, and the neighborhood desired. If schools and crime are important, ask for that information on all the neighborhoods that are on your list. I'd recommend communicating with them by email each week. Tell them to send a list of new properties that fit the exact perimeters and drive by the ones that look most interesting.

If there are open houses stop in and talk a tour. If there aren't any open houses, ask the agent to schedule an appointment with the listing agent to see that house at a convenient time. In the market today, activity has somewhat slowed down, so there shouldn't be a huge rush to grab up a house unless there's a personal reason for needing to find something quickly. If the agent does find a house that is just perfect, here's what will happen. Your real estate agent will need to present some papers to the listing agent, including agency and lead-based paint disclosure, some other documents and the offer itself.

Make absolutely certain to read everything in the offer. Some can be four pages long and much of the language is legalese, so ask the agent to explain everything clearly. It is important to get precise time frames for doing things clearly stated in the offer. Inspections are crucial and they should be arranged within a certain amount of time before closing. Make sure the agent states that the entire contract, when signed, is contingent upon an inspection that shows no serious flaws. Most contracts already include language that requires all systems-plumbing, heating and cooling, electrical-to be in good working order, and that the roof be in good condition. If there are other stipulations that are important, make sure to include them in an addendum or in the blank spaces included in the offering document. If, for instance, it's important that a house be fumigated for fleas and dog or cat smells, put that in the contract. It's your offer and anything can go in it. The other agent and client will just accept and sign or counter with what they will and won't do. The whole process is a negotiation, so negotiate, but don't let yourself be bullied or hyped into accepting the unacceptable either.

Make sure to have copies of all documents, including all the offers and counter- offers. This is your paper trail and it's important to have it on hand in the event that it's needed to prove something like a date or time frame. Make sure also to keep a good calendar of when events will take place-the appraisal, the inspection, the repairs made after inspection, the last minute walk-through, and the closing. Be completely sure the agent knows the closing attorney or that you do, it it's someone you have used and liked before. Do NOT insist on using an attorney who is not experienced in closing houses. When the appraisal is done the loan is set, provided the house has appraised at or above the final offering price. Sometimes it will appraise for a bit less, but this is not entirely a bad thing. It this happens and you still want the house, the seller can renegotiate the price down to meet the lender's appraisal requirements, and there will be less to pay.

The closing is what everyone waits for. When it comes, it's usually a very happy time for both buyer and seller. Make sure that all keys and garage and gate openers are handed over at closing. Anything else that is needed for possession should be passed over at closing. I have closed many a deal and then gone out to celebrate with some very happy buyers who became friends for life, continuing to call me up for repair people's names and other favors and was happy to do it because good agents are in the job of service. You should expect no less.