You have the internet and an plethoria of information at your disposal. And that is all, you have information. To go forward with any wisdom whatsoever and accomplish anything more, you need knowledge and expertise.
Do you know what the best part is, Anish? In the state of Minnesota you do not pay your buyer's representative for anything! That's right, we come free of charge. So if you can have the most experienced, wisest, and best agent.....for absolutely no cost whatsoever...isn't that a no brainer.
You need an agent with a close relationship with a good and reputable loan officer. Before you get too excited about looking at anything, you need to get fully approved for a loan. And you need to fully understand all the programs available to you and get approved for them ahead of time. In addition, get approved for a FHA 203K in addition to a 203B. You may be very glad you did that.
You will need an agent to set up a portal on the MLS for you so you an have real time information at your fingertips.
You need an experienced agent that knows how to help you gain an extensive amount of knowledge on each property on each home and provide that to you every time you walk through the door of another house for a showing.
You need an agent who is an expert at netotiating with the seller/banks, one who understand REO and short sales. THAT in itself, Anish, is the most valuable trait to find in a realtor. And you know something? That is something you many not find out until the last minute when it is "too late". And that may be the difference between you paying $10,000 too much for your property, or not having the purchase agreement written up properly and having problems in the end.
Your agent should also have a good, solid title company behind him/her that can make sure the closing goes smooth and most importantly....you get a good, honest owner's title policy with gap coverage.
Here is what I can promise you. And I will be that each of these fine agents here that have taken their valuable time to answer your question can attest to this, as well. I can look back over my entire career and can tell you for a fact that every single buyer I have ever had has told me the same thing at the closing table, Anish. They always say the same things. "THank you, so much, Mark, for sticking this out with us. It was so much work. We had no idea how much we didn't know. You made things so smooth all the way through. Every time we got worried or upset, you smiled, took the reigns and told us you had everything under control. Working together with you and your whole team (i.e.. the loan officer, the title company , our attorneys, the appraiser, the home inspector, etc.) was so comforting." They never say, "That sure was easy. We hardly needed any of your help." It is the exact opposite.
Anish, have you ever heard the wise saying that "you don't know....what you don't know"?
Well, this is one of thosse times, Anish. You are not sure whether you may need an agent or not. And just asking that question shows us that you have no idea what is on the other side of that little hill you are about to climb. And we are your best asset through the entire transaction. We've been down the river, we've walked through the woods, and we can find our way in the dark.
Yes, you need to enlist the help of a real estate professional, preferably a Realtor with lots of experience, with a good company, that has a good solid team they work with and excellent tools (especially with regards to technology) that can and will guide you through everything. You will thank me for this advice later.
Have a terrific day, my friend. And if you have any other questions, just click on my website link below and either shoot me and email or just call and talk with me. I will be more than happy to help you.
Besides........considering the homes you will want to see will most likely be listed by an agent.....like it or not, you will wind up dealing with one!
Might as well have someone (an agent) working on your behalf!
What's the down side?
Why wouldn't you? A good Agent knows the market, knows the laws, knows the best practices, knows negotiations and must put your needs ahead of their own. Not all agents are "good" agents, so be picky. Read some answers the local agents have posted here. Read some of their blogs and check out their website.
Get a sense of who they are and pick one knowledgeable, experienced and comfortable for you to work with. A home is a huge investment; there is so much to know you need someone trustworthy in your court. By the way, the buyer's agent is paid by the seller, not directly by you, so find the best available agent and good luck house hunting.
I'm sure you have all the info you need on this issue. But, I'll throw my 2 cents in for what it's worth.
With the builder paying the commission for your agent why WOULDN'T YOU enlist your own agent??? They're there to get the best deal for you and look out for your best interests. The builder's agent works for the BUILDER!! They're not evil, just not your agent.
So, that said, MAKE SURE YOUR AGENT IS WITH YOU ON YOUR FIRST VISIT TO THE MODEL!!! Otherwise, the builder might not let them be part of the transaction. It's complicated, trust me.
That's all. Just had to speak my peace~
So your question is should you use an agent, the answer if you should.
A good buyer's agent with experience and a stellar reputation for honesty can make your home buying process a completely different one than the typical horror stories that get posted on here.
Even if you are buying new construction, you will have someone on your side if you bring an agent. Builders are smart, risk-taking, hard driving people by nature and usually have no qualms about taking advantage of buyers who are inexperienced and unrepresented. To the person who commented that they have saved money by not using an agent, I would guarantee that if you looked at the prices paid by all the buyers, there was no advantage given at the end of the day to those without reresentation.
I represent only buyers--an exclusive buyer agent--and that, to me, is the best form of representation you can have. Perhaps look for one of us.
all the legal aspects of buying or selling real estate..It will be less stressful.. and you are sure that you get all Documents needed to disclose to buyers and sellers,to get the inspections deemed necessary..before you close on a property..so you will be in your newly purchased house...with comfort ,ease of mind and satisfaction..
But is a buyer is interested in looking at property that are private listings (For Sale By Owner ), a buyer can hire an agent to help negotiate the transaction and protect their interest in the field ( attorney do the legal paperwork ) in this situation the buyer may pay a commission to an agent. In this type of transaction the agent will try to work out part of the fee with the owner. Sometime during the meetings you maybe asked to sign a Buyers Agreement, be really comfortable with your agent before doing so.
The good thing is that you don't have to pay your buyers agent because the seller will pay the commission of the buyers agent.
Below is an article with more details on advantages of having a buyers agent.
PS: The builder also works with in-house lenders so they can pre-qualify you to and sometimes they give you extra incentives as well using them as a outside bank or mortgage company. Good luck and all the best.
Of course. One who will schedule an appointment with you! Have you come down and explain the process of buying a home. Anyone can meet you at a home. A great agent will give you the time go over the steps and a clear plan. Depending on state guidelines what their process is. What a contract looks like, what types of inspections may be necessary, costs to you what homes are going for in that area, how multiple offers work etc.
I think the best agent is the one who LISTENS to YOUR needs and helps you plan from there.
Simply YES! Interview 3 see who you have best relationship with and who responds best.
A lot of agents will just send listings. See who truly takes the time, responds the way you want them to thru email or calls and gives best guidance.
Best of luck,
This proved false. They were hired by the seller. They work for the seller. It also turned into a bit of a nightmare when they kept pushing their other listings at me with complete disregard to my needs and budget.
It took me a few tries, but I finally found an agent who fit.
If you have friends or family who can make a recommendation, that would be a good start, but don't be afraid to try a few agents out and let go of the ones who are not working for you.
Also, if you can, avoid For Sale By Owner. My experience has been that the owner is often too emotionally connected to the property. It's hard to negotiate with someone who points out how they had this room designed this way for their kids and then tells you how much money they put into the place.
The only way to do that is to hire an Exclusive Buyer's Agent. Exclusive Buyer Agents only work for home buyers and never sellers. There isn't the risk of a the conflict of interest that is inherent with traditional real estate companies.
Agents are experienced negotiators who will manage your offers and counter-offers. His familiarity with the neighbourhood can enable you to find out more about local real estate values, taxes, utility costs, services and amenities. Since the agent is familiar with the entire home purchasing process, he can advise you on your legal and financial options as well as recommend appraisal, home inspection and contracting services.
In short, an agent can pinpoint homes that fit your needs and dismiss those that do not, thus saving you time and energy.
Tom Simonsen Broker-REALTOR
Tom Simonsen, Broker, REALTOR
Your REALTOR for Life
If new construction, The builder/seller would prefer if you used THEIR agent to also represent YOU, but there's an inherent conflict of interest. They'll often offer incentives to get you to do that. Why???? Because an agent who represents your interests SOLELY, will often make them do what they agreed to do.
When a builder says a new home is "finished", I can usually find 20 things that aren't done correctly and need more attention. If I'm representing a buyer, I'll work to make sure the builder does what was promised and that everything works as it should.
There's hundreds of ways for a problem to occur with any transaction, new construction probably adds a hundred more because at the time you agree to purchase the home, it isn't even built yet. In the end, it's what's written on paper that matters. You need to be sure that what is written on paper protects YOUR interests, and addresses YOUR concerns, (not the builder's), because it's YOUR money.
I can help. Call me. 763-228-2967 ~Mike
I don't know if "buy new house" meant new construction. If so I have pasted a link to another discussion on Trulia dealing with this. If is not I will try to keep it simple since there is a million responses by now. I will try to be as unbiased as possible (Don't like it when my responses come across as sales pitches ya know?)
In a basic sense here are the steps to achieving home-ownership:
1) Get financing- You can choose to do this yourself or use the help of a Realtor. If you have amazing credit with a good down payment the lender's qualifications lessen. Rates are very competitive, and if you are that "easy client" loan delays are less likely. The advantage of using a Realtor is I work with lenders every day. This may be your first time but certainly not mine haha! Picking a loan officer is not that much different than hiring us truth be told. There needs to be honesty, trust, and effective communication. You can either interview loan officers yourself, or put your trust in one of us since we have already done this.
2) Searching properties- Yea most buyers do this before financing but that is NOT the correct way. Trulia, Zillow, and independent Realtor websites all have properties you can search. The question is where to buy? What city in Minneapolis (or really neighborhood) will give you the most house for the money? What is important to you? This is 100% something you can do yourself, but keep in mind that this is a major function of what Realtors do. We still have the only accurate website out there (it is not open to the public), and it is our job to understand the neighborhoods you are looking in. I almost always help my buyers with goal setting and identifying neighborhoods and housing to focus on.
3) Showings- Ok you are pre-approved and found some really cool houses to go look at yea! Now how on earth are you going to see them!? Well if you don't enlist a buyer's agent you will work directly with the seller's realtor. They will help you tour the home.
4) Offer and negotiations- OK you found the perfect home and are ready to write an offer! This is usually when emotions run high and buyer's get a little creeped out by all the paperwork. If you work with the seller's listing agent you most likely will enter into a "dual agency representation". That means the listing agent represents both sides and has limited functions on how he can serve you.
For example, lets say you want to get an idea of what offer price you should offer the seller. The listing agent will not be able to tell you this, because he already knows most likely what the seller is WILLING to accept. Likewise, you would not want the seller to know what your bottom line is either.
On the other hand, the listing agent can still talk to you about proper paperwork such as inspections, financing addendum's, closing costs, etc... WE JUST CAN'T NEGOTIATE! That is what you must understand upfront. I can give you access to comps in the neighborhood for determining price if you want, but I can not draft a CMA up for you and talk numbers THIS you must determine yourself.
5) I will end by saying that it can work fine both ways. There are good realtors and bad ones, and just because you are represented does not mean the level of customer service we provide is automatic. That is why I have started adding reccomendations to my profile (my clients have to do it themselves to prevent me from faking it). If you want to interview realtors make sure they have testimonials on Trulia to back up their claims.
If you are a Realtor who has been in this business long enough chances are you listed a home, and if you did your marketing correctly, were able to find a buyer for the house on your own. It happened to me last summer when the buyer lived only a few houses away from where I was listing the home.
It is my job as a listing Realtor (really my MAIN JOB) to actively market a sellers home. That does not mean just put it on the MLS and market to REALTORS, but to actually put forth the effort to go find BUYERS. I don't know too many listing agents that turn down these deals, and I don't know too many agents who would tell these buyers "to go work with someone else because I am the listing agent".
Therefore (if you are still reading this), it would be hypocritical for me to sit here and say YOU MUST USE A BUYER'S AGENT!!!! And yet that is what all 14 responses are telling you to do Anish.
THE TRUTH IS BUYING A HOME ALL COMES DOWN TO WHAT YOU NEED AND COMFORT LEVEL. THE SELLER DOES PAY OUR COMMISSION SO IT DOES NOT COST YOU USUALLY ANYTHING TO WORK WITH A REALTOR. HOWEVER, THAT DOES NOT MEAN I AM GOING TO TELL YOU IT SHOULD BE AUTOMATIC.
MY JOB IS TO BE HONEST, ETHICAL, AND FULLY DISCLOSE TO YOU AGENCY AND REPRESENTATION. I must effectively communicate to you all of this.
I am not here to do a hard sale on you Anish. I present the facts and let buyers (and really sellers) decide.
I would like to caution against going into a purchase without an Exclusive Buyers Agent overseeing your transaction. There are many pitfalls that can occur if you have no representation. They can create so many issues for you after the purchase that the term 'Buyer's Remorse' would fall short of the mark.
There is also a lack of full disclosure often when using a traditional agent, even if they have a designation of buyers agent, if they work for a broker that lists other property. You run the risk of dual agency in which you have no real representation from your agent.
Since all real estate deals are skewed toward the seller, the best way to ensure that you as the buyer have full disclosure is to get an Exclusive Buyers Agent to assist you. There is no conflict with the seller side or broker as they do not list homes and therefor have only allegiance to you and can provide true disclosure and protection of your private information like your motivation for buying.
This is a changing market, the conditions are in flux and you would be well advised to contract with an Exclusive Buyers Agent to assist you so will get full disclosure and protection of your motivation and financial position.
As an Exclusive Buyers Agent myself, the goal of an EBA is to save you as much money as possible and get the best deal possible for you with the best terms while protecting your interests.
You cannot become an expert in this industry just by reading information on the web, and every deal is different, I'm still running into situations that differ from anything that anyone in my office has had to deal with in the past.
Before you decide to purchase do your research and discuss Agency and the 5 types of Agents in Minnesota. You will see in the Agency disclosure that the Buyers Agent, particularly the Exclusive Buyers Agent brings you the best support as a buyer.
Regardless of whether you are taking out a mortgage or paying cash you still want to ensure that your money and your investment is safe and have someone help you build equity faster by making better more informed decisions throughout the process.
I hope you found this helpful and there's a short video on my website about this as well at
http://www.FindYourMinnesotaHome.com for future reference.
Good luck on your purchase.
NMLS # 6395
Financing Kentucky One Home at a Time
* How long has the agent been in real estate?
* Are they familiar with the neighborhoods you are considering?
* Do they have experience in short sales, foreclosures and/or property management/leasing (if buying for investment)? Approx. 40% of sales now are "distressed" and fall into short sale or foreclosure categories
* Do they have experience in multiple offers? Believe it or not, this has been very common lately
* What is their level of professionalism and their organizations?
I'd be happy to help:
Brett Hildreth, MBA, CDPE
Coldwell Banker Burnet
If you want to search for properties & schedule all the individual appointments to see them, know how to pull the applicable comparables, write up the contract, negotiate all the terms of the contract so you are properly protected, schedule the home inspection and coordinate entry to the property, follow up with your lender and ensure everything is progressing smoothly, understand all of the contingencies and closing documents that you will ultimately be signing, and have the time and energy to devote to doing all of this yourself - then no, you don't need an agent.
If you'd rather have a professional who does this on a daily basis take care of it at no out of pocket cost to you - then call an agent.
Hope this helps!
If you buy a house that's listed on MLS you will be subject to real estate agency laws. Either you have a buyer's agent who represents your interest, you and the seller are both represented by the same agent in which case neither gets the best representation or just the seller is represented in which case you get no advice while the seller gets a professional on their side. The seller agrees to pay the same commission in all 3 cases so there's really not a financial difference that would result in a lower house price.
If you are buying a For Sale by Owner home directly it still may be advisable to have an agent represent you but it's not mandatory.
Feel free to contact me for a more detailed explanation.
RE/MAX Advantage Plus
I never mentioned the legal side of things. Only a few years ago a purchase agrement was a couple of pages. Today it will take 25 -30 pages to buy your home. If it involves a foreclosure or short sale, it may be as much as 70-80. YOu need someone to represent you that understands Minnesota real estate law and how each of the legal forms works. I have approximately 85 legal forms on my computer here that I have to be able to use at any one moment for you. Not 5 or 10, almost 100. And those are the standard forms. You will need an agent that has a secure knowledge of the law and how to use those forms and for one main purpose: to do whatever is humanly possible for you that is in your best interest. IF you get the wrong agent and he/she does not understand even ONE of them,that ONE could be the legal option/form you need in a given situation to secure your interest in a property.
And let me tell you, I have 4 corporate attorneys for the real estate side, two in title, and one in the mortgage side. And I can tell you that I call them all the time to ask questions. I want my buyers and sellers to have the best representation humanly and legally possible. And you know what? They LOVE that!
I always recommend that a buyer have representation from an agent. Realtors work with negotiations all the time and know what is reasonable, what areas you can negotiate for a little more. They can look in on the transaction with a neutral set of eyes, it is easy to miss things in the excitement of buying a new home. There will be many excellent reasons given by realtors in response to your question. Feel free to contact any of them that reply or I can make a few recommendations for you if you wish.
Let me also say that sometimes a builder will try to discourage people from obtaining representation, by stating that you will have to pay the commission. Any reputable builder will be familiar with working with clients who have buyers agents. Personally if they tell me this I would find a different builder.