Welcome

As a home buyer, what does a realtor do for you? Guess what, they do a lot so don't discount this service. The main function of your realtor is to find you your dream home and negotiate for you. When they find a home that meets your personal needs, they set up an appointment with the seller and meet you at the home to see it. Once you find the perfect home to buy, they will negotiate and finalize the terms of the contract. Aside from showing you a home and negotiating on your behalf, the hardest part of the realtor’s job is finding your dream home.  Did you know that realtors typically see properties for sale before the public? They have a system called the MLS where most properties are listed for sale a few days before any traditional website such as Zillow or Redfin etc. There is also something called the private network where properties are for sale that will not pop up on the consumer websites, but the agents have access to them. The right realtor in your corner is more important now than ever in today’s housing market.  

How do I find the right realtor? Finding a realtor is like a job interview. You are trying to find someone that you connect with and feel comfortable with because you will be spending a lot of time with this person. Here are a few basic things that you should consider. 

-Finding a realtor that knows the area you are buying a home in is very important. A Local expert.

-Find an agent with good communication and negotiating skills is key.

-A full-time agent with flexible availability is crucial. When new properties come on the market sometimes you need to see them right away. 

-Finding an experienced realtor is important. Don’t assume a realtor with 20 years in the industry is better than someone with 2-3. You need someone that has a few experiences but more importantly is aggressive and knowledgeable. 

So how do you go about finding a realtor? I would definitely ask your lender for a referral. You can also ask friends and family or reference our realtor directory on this website. Just remember people tend to refer someone they know which doesn't mean they are the right fit for you. You should always do your homework and research them online. Google and Zillow reviews are a great start! In my experience Yelp is Not the best site to use so I would recommend staying away from it.

Things to Avoid 

-Do not go on real estate sites (ie: Zillow, Redfin etc..) and have them refer you to an agent. Companies like these sell advertising spots to agents whether they are the highest paying bidder or first come first serve basis. There might be some good agents that do advertise with these companies but that is not a guarantee, and these are not properly vetted agents. 

-Do not call the realtor listed on the for sale signs or listings. If you call the realtor listing the home and get into a contract with them it is called Dual Agency. Guess what, you will sign a form that has verbiage that basically says they are not representing you or in your best interest because the seller is their client. As a buyer, it makes no sense to do this. Since there is no cost to use your own realtor you should get one. Then you have someone in your corner negotiating on our behalf and in your best interest.

Foreclosures: 

A foreclosure is the legal process by which the homeowner forfeits their rights to their property, based on their inability to meet their repayment obligations.

Buying a foreclosure doesn’t have to be a difficult process so don't be intimated by one. Your realtor will facilitate the contract and negotiations just like a normal purchase. Instead of buying the home from the homeowner you are buying it from a bank or lender.

Most of the time you will be purchasing the home under market value which means you will have equity in the home day 1. Some common issue you might run into is the condition of the home. Some banks/lenders turn the utilities off or winterize the homes because they don't always know how long the foreclosure process might take. Winterizing is a process of preparing the property to be vacant during the winter months. When getting financing through a bank/lender, the utilities in most cases will be required to be on. Another pitfall you could experience is the condition of the home. Depending on the condition, certain things may need to be fixed if noted on the appraisal before you can close on the property. This could cause an issue because, in a lot of cases, the institution selling the foreclosure may not agree to fix the items required. This is called as-is. 

Keep in mind these are not hard fast rules. Please consult with your realtor for more information about the property and selling institution. 

Short Sales

Short Sales are different from foreclosures. A short sale is when you purchase a home with an asking price less than the amount owed on the current mortgage. You will still make the offer through the seller. The seller then brings the offer to the lender who is holding the mortgage to determine how much money they are willing to lose. There is a process within that institution to make that decision which can take time depending on the stage of the short. Short sale time frames can range from 1 month to 6 months. Your Realtor will be able to provide to you what stage of the process the institution is in. Ultimately you are putting yourself in a contract to buy a home for all those months with no idea if you will get the bank to agree. If you are on time frame this may not be the best route for you. 

Whether you are buying a home from a seller that is using a real estate agent or from a seller not using a real estate agent the process is almost the same. Selling a home without a real estate agent is referred to as a For Sale By Owner (or FSBO). Some sellers don't want to pay 4%-6% realtor commissions so they decide to list their own home for sale. With online real estate services like Zillow being so popular it's very easy to list a home for sale and it's typically free. 

There are a few additional steps that you will have to do as a buyer purchasing a FBSO.

-You will need to call the seller directly to schedule an appointment to view the home. 

-You will need to negotiate the price directly with the seller. 

-Once you come to an agreement on the price you will ask your attorney to prepare a contract and submit the formal offer to the seller.

-If you opt to do a home inspection you will be responsible to coordinate the appointment with the home inspector and seller.

As you can see this is a very manageable process. The biggest challenge you have is the price of the home.  As a buyer, you have a fail-safe for this. During the loan process, you will be required to have the property appraised. If the house over-appraises good for you. If the property under appraises then you will go back to the seller and try to renegotiate for a lower price.