|
|
A fair
number of home buyers are reluctant to seek professional help with buying
a home and, hence, expose themselves to incredible risks, because
they’re not sure about how buyers' agents are paid. Throughout my years
as a professional, a number of people have told me that they wanted to
have an agent represent them, but they started out searching on their own
instead because they had read or heard that a buyer’s agent charged the
client directly for his services and that the agent’s fee started at
$5,000 to $6,000, or more.
The best thing that most real estate buyers or sellers can do when
considering the costs and benefits of hiring a professional is to forget
much of the so-called “self help” material they they may have read
about how real estate agents or brokers work, and then call a Realtor®
to ask him or her directly what kind of service to expect. While much of
the real estate information conveyed as fact in publications ranging from
consumer magazines to business and personal finance magazines to local
newspapers does contain some excellent information, it also contains a
fair amount of misinformation that is based on how the real estate market
used to work, but not how it works today.
Today—in the real world—a member of any profession must be compensated
for his time, experience and effort. People who aren’t compensated, go
out of business because they’re unable to pay their expenses as well as
their mortgages, car payments, grocery bills and other costs of daily
living. Today—in the real world—state law dictates that a real estate
professional hired to help a buyer find and purchase real estate owes a
special allegiance to that buyer, regardless of how that real estate
professional is paid. If a buyer’s agent is to receive his fee from a
broker who lists a property for sale, that agent still owes NO allegiance
to that listing broker nor to the seller; the only loyalty of the buyer's agent is to the buyer.
With these facts in mind, know that you should never pay an “up-front
fee” to a buyer’s agent, or “buyer’s broker.” A truly
professional and successful buyer’s agent will always agree to be paid
when the purchase of your home is completed—that is, when the financing
has been granted and the new deed has been recorded.
Except in certain circumstances that are limited and rare, most buyers' agents will agree to have their entire fee paid by the listing broker of the property being purchased, or agree to be paid directly by the seller.
In any event, no reputable real estate broker will demand or expect one
penny in compensation from a buyer without first disclosing in advance the
purpose and amount of the fee. If a buyer doesn’t agree to a fee in
advance and in writing, he should never pay it.
The benefits of having a professional representative are numerous; so much
so, in fact, that most professional investors who purchase and sell
residential real estate for profit would never even consider doing so
without the assistance of an experienced, professional agent.
A few of the more obvious benefits of
professional representation are listed below.
- Professional Search Service – Saves time and frustration by
locating the most suitable properties quickly and by weeding out those
properties that don’t match a buyer’s exact needs and desires.
- Accompanied Property Tours – Having an agent provide tours of a
neighborhood and its homes helps buyers learn the positive and negative
aspects of each home toured. An accompanied tour also saves time when
searching neighborhoods with which a buyer isn’t yet geographically
familiar.
- Professional Research – A knowledgeable professional will be able
to help gather information that buyers need in their decision-making
processes. Such information includes crime data, school information,
neighborhood characteristics, deed restrictions, homeowner association rules
and fees, etc.
- Professional Market Advice – Saves money by researching property
values for similar homes and making sure buyers know whether the price
they’re being asked to pay is too high.
- Professional Negotiator – Saves money and time by making sure you
get the best deal or don’t waste time going back and forth with an
unreasonable seller while missing out on a better opportunity.
- Professional Counsel – Saves time and protects the buyer’s legal
interests through preparation of purchase contracts and other related
documents. Provides advice regarding negotiating and purchase alternatives and
suggests contractual clauses that may protect buyer’s interests in the
transaction.1 Explains the buying process
(and all of the documents, steps and legal jargon that accompany it) in plain,
straight-forward language.
- Professional Facilitator – Saves time and money by directing
buyers to best sources for loans, building inspection and testing services,
contractors, etc. Acts as go-between to schedule and obtain property access
for inspectors, contractors and appraisers so buyers minimize the time they
have to be away from their work or families.
- Referral Service – Make buyers transition into new home and
neighborhood go more smoothly by helping buyers find services they need in
their new location, e.g., utility companies; household goods storage; truck
rental; moving services; medical, dental and legal referrals; newspaper
delivery; daycare services; pet grooming; etc.
The buyers I have worked with
throughout NW Oregon know that I make my clients #1, and that I am flexible in
meeting their schedules. If you're looking for a top-quality, professional
broker to make the purchase of your next home easier and safer, please use the
"Contact Craig" page of this web site to e-mail me, or call me at
503-632-8258. You'll get served by the broker who really knows who is #1 in real
estate: You the Customer. You can also use the “Dream Home Finder” on my web
site, and I’ll send you detailed information for all of the matching
properties that are currently on the market.
Some of the specific buyer services I provide are listed below:
- Interview buyers to determine property needs and desires;
- Search and review all available listings;
- Check for new listings daily;
- Call on properties that are "For Sale By Owner";2
- Contact owners with expired listings to see if they may still be willing to sell;
- Preview properties for buyers, when requested;
- Drive buyers to and from properties under consideration;
- Provide neighborhood and market data for homes under consideration;
- Research private and government agency sources for further property information;
- Negotiate aggressively on buyers’
behalf;
- Provide and complete purchase contracts and other sale-related documents;
- Re-write and renegotiate contract terms, when needed;
- Provide loan contacts and information, when needed;
- Act as go-between for attorneys, inspectors, accountants, etc.;
- Accompany buyers to signing of loan documents and other transaction closing documents;
- Assist buyers in finding daycare, movers, utilities and other services;
- Provide post-move follow-up to ensure smooth transition into new home.
|
