Choosing a Buyer's Agent

When Choosing a Buyer's Agent, the first thing to do is to determine

a. How many homes has this agent helped to buy
b. What percentage of this agent's transactions are (or have been) as an agent of the buyer as opposed to the seller.
c. Has this agent had multiple transactions for the same buyers?
d. Has this agent saved her or his buyers money. Has this been documented?
e. Does this agent know how to help you find a lender and/ or shop for a mortgage?
f. Does this agent have a list of ASHI (American Society of Home Inspectors) certified home inspectors?
g. Does this agent have a list of local real estate attorneys?
h. Does this agent have any training and/or experience in negotiation?
i. Is the agent familiar with the current local market?
j. Does this agent communicate well?
k. Does this agent have recommendations/ testimonials from former clients?
l. Has this agent demonstrated a commitment to the profession?

Do I Really Need A Real Estate Agent? 20 (plus) Questions

Not everyone needs a Real Estate Agent in every Home Buying situation. But remember: Buying a home is a complex process, even if you've done it before.

First of all, no two transactions are exactly alike and nearly every transaction has unexpected challenges.

So, here are some questions to ask yourself before you decide whether or not to use an Agent.

1. Do I have FULL access to ALL of the information I need to locate ALL of the properties that meet ALL of my criteria? How many agents and sellers will I have to deal with in order to access all of these properties?

2. Do I have the knowledge and experience to use the information that I obtain in order to choose the home that would best meet my needs?

3. Do I know the ever-changing market well enough to know what is realistic to expect in terms of price, condition, etc.?

4. Do I have the ability to put together a purchase offer in a timely manner which will best serve my interests in terms of cost and timing while limiting my exposure to future problems and still have appeal to the sellers?

5. Do I know exactly how much I can or cannot afford and where I can go to obtain a mortgage?

6. Do I know where to find a qualified inspector (or 2 or 3, if my first choice is not available when I need her or him?)

7. Do I know what is reasonable to expect to find or not find at a Home Inspection? Do I have an understanding of what issues are most important and where I have negotiating leverage and where I don't?

8. Do I have negotiation skills that I can use in various stages of the home buying process?

9. Do I have the ability to determine when and if I will need legal expertise to evaluate Title Commitments, Association By-Laws, Contracts, Counter-Offers and Addenda?

10. Do I know where to find a qualified and dependable local Real Estate Attorney if I need one?

11. Do I have the energy and resources to take care of the myriad tasks necessary to purchase a home and/ or to put together a qualified and dependable team of professionals to assist me?

12. Will I be able to do the above in a timely manner?

13. Will I know where, when and how to shop for a mortgage? Will I know how to compare one lender/ loan program to another? Will I know how and when to lock-in to a loan? Do I understand what my contractual obligations would be in terms of locking in? Do I know how to compare Apples to Apples? Do I know what the 3 main criteria are for choosing a lender/ loan program? Do I know the difference between Closing Costs and Junk Fees? Do I know how much they may be?

14. Do I know the difference between a contingency and a condition? Do I know what the mechanics for removing a contingency are? Do I know what a voidable contract is? Do I know how to write up an addendum. Do I know when (and when NOT) to ask an attorney for help?

15. Do I know how to determine if the Listing Agent or Seller is competent or not?
Will I know if and when I should ignore what the Seller or Seller's Agent is telling me?

16. Do I know what Earnest Money (EMD) is? Do I know how this relates to Downpayment? Do I know what an appropriate amount for each is in different situations and markets?

17. Will I be able to avoid the risk of losing my EMD or Downpayment?

18. Do I know how to deal with Title Companies and Title work? Do I know which companies are best (and worst?) Do I know what to expect in terms of Title fees? Do I even know what they do or who they are working for?

19. Do I understand the Closing process; who needs to be there, for how long, what documents I/ We will need to bring or to sign? What should I be looking or looking OUT for? What should I leave with?

20. Will I be able to sleep in my new house without worrying that someone may knock on my door some day (or night) and tell me it's not mine anymore?

And, now, a free Bonus Question: Why would I NOT use an agent? Especially if I don’t have to pay for her or his services?!!!?

Even In A Buyer's Market...

Here’s something that I just passed on to my past clients, buying again:

It's tempting for a buyer to feel that the world is her or his oyster right now. Prices are falling, sellers are desperate and accomodating, interest rates are still very, very low. But don't get too confident or greedy.

Even in a buyer’s market, the best places sell first, so be prepared to act relatively quickly once you make a decision. (I have a new buyer who went on a two week-vacation to decide what he wanted to do. When he got back yesterday, the unit he wanted was sold).

There are some great deals out there. Find a good Buyer's Specialist. Do your research. Get your financing in order and, when you've got everything lined up, Act.

S/He who hesitates loses; Even in a Buyer's Market.

Can we find a Win-Win Perspective?

As I mentioned in my previous post, Joseph P. Kennedy, multi-millionaire and father of John F. and Robert F., used to say "Only a fool holds out for the top dollar." Considering his successes in business and in the stock market, maybe he was on to something. And maybe it says something about our current "housing crisis". Let's remember that "Crisis" is comprised of both "Danger" and "Opportunity". Granted, there is a glut of homes on the market fueled, largely, by the frantic and endless building of new homes everywhere (not to mention predatory lending and foreclosures). But, as others have pointed out, that means it's a Buyer's Market!

Two of our problems are the age old human qualities of greed and fear.

Sellers are in denial and are holding out for "top dollar".

Buyers are frightened, undestandably, or are waiting for the market to bottom out. I would paraphrase Kennedy in suggesting that "only a fool would wait until we hit rock bottom before buying. No one knows when we've hit bottom until the market has already turned around." I have also seen a number of buyers who don't seem to appreciate what the market has done for them. They seem to want an extra pound of flesh, regardless of how much the seller may have already lost. As I've been saying for a long time, it's a Buyer's Market. Don't let irrational fear hold you back but don't let greed convince you that you can make a "killing".

For Buyers and Sellers

"Only a fool holds out for the top dollar."
Joseph Kennedy

Dreams Come True

“Dreams come true; otherwise nature would not incite us to have them”
John Updike

If You Dream Of A Castle In The Clouds

""If you dream of a castle in the clouds that's where it is supposed to be, now put a foundation under it."
Henry David Thoreau