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Buying a house is a very exciting time and one that buyers should prepare for. Whether it’s preparing to get a mortgage or shopping for houses, making a mistake when buying a house can lead to many future headaches.
Most houses that are being sold will have an agent representing the seller, which is frequently referred to as a listing agent or sellers agent. The listing agents main responsibility is to make sure the sellers best interests are being protected.
So how does a buyer make sure their best interests are being protected? Simple, hire a buyers agent. There are several reasons why it’s extremely important that when you’re buying a house that you hire a buyers agent.
One of the most obvious reasons to hire a buyers agent when buying a house is that it’s free. There are very few circumstances where it costs money to hire a buyers agent.
One circumstance that can lead to a buyer potentially having to pay for a buyers agent is when purchasing a for sale by owner (FSBO) who is not willing to pay a commission to a buyers agent. It’s pretty rare that FSBOs aren’t willing to pay a buyers agent commission, but it can happen. Due to this, it’s important that if you’re considering the purchase of a FSBO that you’re aware of this possibility.
Since 99.9% of the time it’s free to hire a buyers agent, it’s an obvious reason why you should hire a professional to represent your best interests in the purchase of a house. It’s vital, however, that you don’t just hire any buyers agent. There are certain things you should expect from a real estate agent when buying a house.
It’s highly suggested as you think about hiring a buyers agent that you keep in mind they’re protecting your best interests during one of the biggest transactions you’ll ever take part in.
There are certain red flags to look for when buying a house, many of which you may not be aware of. An experienced buyers agent who looks at houses day in and day out will be able to identify potential problems within a house relatively easily.
Recently while selling a house in Brighton NY, there were potential structural issues with the foundation of the house that were not clear to the buyer. As the buyers representative, it was my job to point out the potential issues and suggest that they have it further evaluated by a structural professional. The buyers, needless to say, were thrilled that this was pointed out and they were made aware of this potential defect.
This is only one example of what an experienced buyers agent can identify within a house when viewing them. Other common things a buyers agent can identify include;
Pest/Insect Issues
Potential Mold Issues
Roofing Issues
Leaks
Age(s) Of Major Components (Furnace, Air Conditioning Unit, Etc…)
Each and every real estate market is different. Real estate markets can differ from town to town and even neighborhood to neighborhood. It’s extremely important when buying a house that you understand the local market.
Since there are many reasons why real estate markets are different, another great reason to hire a buyers agent when buying a house is because they understand the intricacies of the local market. A buyers agent who understands the local real estate market can go a long way when the time comes to make an offer on a house.
It’s highly recommended as you hire a buyers agent that you make sure they have experience selling houses in the area. Hiring a real estate agent who doesn’t have an understanding of the local real estate market can cost you thousands of dollars should you make an offer that isn’t inline with local house values.
he world of real estate financing can be very confusing and complex. One thing to expect when you hire a buyers agent when buying a house is help with evaluating and securing the best financing for your circumstances.
A buyers agent can help you navigate through the various financing options and help you decide which type of mortgage is best. In addition to helping you understand the various options, a buyers agent will be able to help you secure financing through a mortgage broker.
It’s important to keep in mind as you’re securing financing that you strongly consider using a local mortgage company. Local mortgage companies understand what the process is for real estate transactions and also any local rules or regulations.
One of the most overlooked tasks that a buyers agent performs on a daily basis is the coordination of showings for buyers. Coordinating showings can be tricky and something that gets confusing.
A great reason to hire a buyers agent when buying a house is they’ll be responsible for coordinating viewings of potential properties. Depending on a buyers house search, it’s possible that a buyers agent is coordinating a large number of showings in several different towns at a variety of different times.
If you’re buying a house and have interest in a dozen properties, a buyers agent is responsible for making sure that you have the opportunity to view potential properties if they’re available. This may mean making a dozen phone calls, figuring out the best route for the showings, and making sure they provide you all of the pertinent information about the properties.
Even if you’re buying your tenth house, it’s unlikely you’re familiar enough to navigate a real estate contract. When you hire a buyers agent when buying a house, you’re hiring a professional who knows the ins and outs of real estate contracts.
There are many parts to a real estate contract and having an experienced professional to guide you through the contract is vital. There are several real estate contingencies to consider including in a purchase offer, several deadlines that need to be set in a contract, and other important parts to within a real estate contract.
In addition to the important aspects within a real estate contract, an experienced buyers agent will know how to write a contract that presents you in the best possible way in the eyes of a seller. A real estate contract that is poorly written or a contract with missing or blank areas is a common reason why a purchase offer is rejected when buying a house.
During the course of a real estate transaction there are several professionals that are needed. When you’re buying a house you’ll potentially need a mortgage originator, a home inspector, a real estate attorney, and a handful of other professionals.
When you hire a buyers agent when buying a house, you can expect they’ll have a pocketbook full of recommended professionals. An experienced buyers agent will have several mortgage companies, inspection companies, law firms, and other services that they can recommend to you.
It’s likely that the professionals a buyers agent recommends provide quality service and would also be looking out for your best interest during the purchase of a house. One of the best questions to ask when interviewing a buyers agent is whether they have a list of recommended service providers. An experienced buyers agent should be able to provide several recommendations for each respective professional category.
One of the most frequently asked questions about buying a house relates to the amount that should be offered for a home. A huge benefit that you’ll receive when you hire a buyers agent is that they’re negotiating on your behalf.
Depending on the house you’re attempting to purchase and the current state of your local real estate market, having a top notch real estate negotiator can be critical.
For example, if you’re attempting to purchase an overpriced house, your buyers agent needs to know what it takes to purchase an overpriced house. This may include, but isn’t limited to completing a detailed comparative market analysis proving the house is overpriced or structuring the contract dates to appeal to the seller.
If you don’t hire a buyers agent, you’ll be required to do the negotiations by yourself. In the example of buying an overpriced house, there is a good chance that the majority of buyers don’t know how to make an offer on an overpriced house.
Delays in real estate transactions happen, but this doesn’t mean that it’s acceptable. A delay in a real estate transaction is frustrating to all parties involved, especially for a buyer and a seller.
When you hire a buyers agent, you’re greatly improving the chances that your real estate transaction will stay on schedule. There are dozens of reasons why real estate closings are delayed, many of which can be avoided by hiring a top buyers agent.
A buyers agent is responsible for making sure that contract dates, such as a written mortgage commitment, are being met. Other culprits of closing delays include delays in appraisals being ordered or delays in an instrument survey being completed. An organized buyers agent will have a system in place that ensures these delays are avoided.
Buying a house is very emotional and can potentially get the best of a buyer. Another great reason to hire a buyers agent when buying a house is they can act as an emotional filter.
Since a buyers agent isn’t emotionally attached to a specific property you may have interest in, they can help keep you from making an emotional and rash decision. Ultimately a buyer is the final decision maker, but a buyers agent can help a buyer weigh the PROs and CONs to potential properties while taking the emotion out of the decision.
Save money by learning to delegate tasks.
When you hire a buyers agent, you’re hiring a professional to look out for your best interests during one of the largest purchases you’ll ever make.
