Home Buying in San Jose>Question Details

Ivon, Home Buyer in San Jose, CA

What to ask to a buyer's agent? How do I check his/her credentials and any complaints?

Asked by Ivon, San Jose, CA Fri Aug 29, 2008

I'm looking into buying a property, especially interested in a bank owned property because of my limited budget. I done almost everything, pre-approved for a loan... However, I'm having a hard time deciding on a real estate agent. I have some candidates in mind, but I don't know what should I ask them or look in them that will help me. I know so far that the agent should specialized on foreclosed homes. Is there anything else? how do I know if the agent will be honest or had any complaints?
Also, do I need a broker? I'm going with BofA through a mortgage specialist.
THX.

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6
Ivon,
As far as financing, it's a good idea to get 3 different opinions. I suggest BofA, Wells Fargo and Wachovia. You either go through a broker or directly with one of these finance institutions. By going with a broker keep in mind you will be paying a broker fee + loan origination charge (most cases)
Choosing the right property, ones you have your max pre-approved purchase price, then you can make educated shopping for homes. They might be bank owned, but you might find just as a good of a deal with a regular sale - the key is to do an extensive seach, the right way! In a regular sale (like mentioned below) you have the advantage of being able to get credits for your closing costs (more easily) for inspections, etc.
Finally, to choose the right agent. My top #1 recommendation is to choose the agent that will have excellent and prompt communication, that is accessible, and that works for a leading RE company. Lastly, see if they have any professional real estate designations, such as:
GRI (Graduate, REALTOR Institute) edesignations.com | CRS (Certified Residential Specialist) crs.com

Best of luck Ivon!!
0 votes Thank Flag Link Sat Aug 30, 2008
Ivon,
You have been given excellent answers, if you follow these suggestions you will be in good shape.
You said that you were given a pre-approval from BofA, were you satisfied with the rates and did the amount that you were approved for match your expectations? If not, be sure to do some additional shopping around. I would be glad to suggest George Pires of Princeton Capital, his phone number is (408) 355-2105.
With the Realtor that you choose, you must give him your list of items that are most important to you.
Is it a condo, townhome or single family home? Is it the neighborhood that you want to live in? Is it 2 or 3 bedrooms and 1 or 2 bathrooms? What features in a home are important to you?
Those are some of the big questions to ask when looking for the right place to purchase, best of luck!

Charles Coachman
0 votes Thank Flag Link Fri Aug 29, 2008
1. You will not get a better deal on a bank owned property. Why would a bank choose to sell a property for less than it is worth?
2. If you have only talked with one single bank you not aware most of the mortgage options available most of which that bank does not offer.
3. There is no relevant difference dealing with bank owned properties versus any other property for sale.
4. You can go to the Department of Real Estate web site to see if a particular agent or broker has any negatives on there record. As most problems are resolved off the record this is of dubious value.
5. You should consider interviewing a few agent/brokers in order to make up your own mind as to compatibility and ability to answer your questions.
6. Yes, you do need an agent/broker. A mortgage "specialist" need know nothing about Real Estate. A real estate agent /broker who is a CMPS Graduate (Certified Mortgage Planning Specialist )is a strong candidate for your considersation. Check out http://www.cmpsinstitute.org/public/why_you_need for further info.
NOTE:
FYI, the difference between an Agent and a Broker is a matter of further education and a higher level of legal accountability to you.
Hope this helps,
Bill.
0 votes Thank Flag Link Fri Aug 29, 2008
Ivon -

Mike gave you the web site to find out if an agent has any complaints against them. Best way is to ask for referrals from friends, family, and colleagues and then sit down with the agent to see if it is a good fit. The agent might be the best in the land and not be the right fit as you get to know them through the interview. Find the right combination of experience and style to solidify the best working relationship.

You say you are looking for a deal and I would challenge you to say that not all deals are found in foreclosures. Few foreclosures will do what a seller with equity will do. Sellers with equity can pay closing costs, can pay and complete inspections, can complete repairs at buyer's cost, and actually know more about the home and neighborhood. Some sellers are even willing to carry back the loan for you. Banks don't do inspections, rarely pay for repairs, rarely pay for closing costs, and know nothing about the house or neighborhood. I am not saying don't buy a foreclosure but to investigate all options to find the right deal for you. I believe if you have a good agent, you can find and negotiate the deal whether or not it is a foreclosure or not.

Good luck,
CJ
Web Reference: http://www.TalkToCJ.com
0 votes Thank Flag Link Fri Aug 29, 2008
You don't need a mortgage broker, if you have already gone through BofA - although have you shopped around? I would write to agents in your area and have them send you a buyers contract. Look and compare, and then send back a revised contract, making the term of the contract 4 months, decreasing the commission/consideration paid to the agent, etc... You don't have to buy a REO property to get a good deal. In fact REO properties are shed from banks to RE agents, because the bank wants the property sold at the highest price possible in the market. There is too much hype about the REO properties IMHO, because in reality, you should be able to negotiate any property down to a fair price right now. If you don't like the agent you get, then fire them and tell them why you don't like them so they can do better for the next customer. Generally, there is a clause in the contract that says any party can terminate the agreement with a week notice or so.

Good luck Ivon.
0 votes Thank Flag Link Fri Aug 29, 2008
Hi Ivon,

you are doing the right thing in questioning the people you are interviewing for the job. Ok first it is ok to ask the agent for a list of references. Ask them why you should pick them as your agent. The you can go to the DRE website to check on any complaints filed about that agent. Most agents work for a broker, but when you check on the webiste it will tell that infomation go to http://www.dre.ca.gov/gen_lic_info.html

good luck and all the best

Mike

Mike Moresco
408.357.8727
Web Reference: http://www.mikemoresco.com
0 votes Thank Flag Link Fri Aug 29, 2008
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