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Real_Estate_Buyers_Beware_Get_Representation_You_Need_Representation
| Real Estate Buyers Beware: Get Representation... You Need Representation
It is the buyer’s right to seek an agent, and it is in their
best interest to do so.
For Sale by Owner When a potential buyer sees a For Sale by
Owner property he or she should contact their realtor before
contacting the For Sale by Owner. And when the buyer makes an
offer on the For Sale by Owner Property he or she needs
representation on the sale. The buyer always needs
representation for many reasons.
Home Inspections Most buyers do not know to ask for home
inspections, what they cost, or who to call to do one. If there
is work to be done on an inspection report, a buyer should
negotiate, and a REALTOR has skill and experience at this.
New Home Sites New home site buyers need to hire a REALTOR to
look out for their interests, too. Remember, the site agent is
there to protect the builder’s interest and therefore everything
will be geared towards what benefits the builder, not the buyer.
When registering at a new home site, be sure to include your
agent’s phone number, name, and company.
Dual Agency: The Listing Agency When a REALTOR chooses to
represent the seller AND the buyer, this is considered dual
agency. A buyer’s rights are not emphasized in these
circumstances. Bringing a REALTOR onto the buyer’s side
equalizes the sale, and gives the buyer much needed experience
and professional advice. Earnest Money Deposit When the buyer
makes an offer on a For Sale by Owner – who makes the Earnest
Money deposit? How does a buyer obtain the deposit back if the
contract falls through? A REALTOR will place the money in an
escrow account.
Buyer’s Broker Agreement A buyer’s broker protects the buyer’s
interest in the transaction. In Virginia, the seller pays the
commission, so by law the listing agent and the selling agent
have to protect the seller’s interest. So, if you select a
buyer’s broker to work with you on the home purchase, you will
be represented in the sale.
Cost Analysis In order to prevent overpaying for a home, a
REALTOR will do a cost analysis for a buyer, to determine if the
home is priced correctly. This is the same kind of analysis an
appraiser would do, using comparable sales which have closed in
the last three months in the area.
Escalation Clauses Escalation clauses are applicable in markets
where there is very little inventory and it is a fast selling
market. The escalation clause will give you a competitive edge
in procuring the home that you want when multiple offers are
presented on a property. An escalation clause is not a standard
feature on contractual sales.
Home Owners Association The buyer needs to know the time frame
for the Home Owners Association (HOA) packet. A buyer may be
caught in buying into an HOA with high hidden fees if the
timeframe is missed when he or she can exercise their right to
void the contract. This will vary from state to state.
Disclosures & Disclaimers If there has been any structural
damage to the home or adverse environmental problems with the
home they must be disclosed. An example of this would be
asbestos wrapped pipes. If not, then a disclaimer will accompany
contract. Laws on disclosure/disclaimer vary from state to
state.
Well and Septic In rural areas, where well and septic are used
instead of city water, they are applicable as conditions of the
contract. There are time frames for these inspections also,
which vary from state to state.
Termite and Moisture Clean termite and moister letters vary from
state to state and from the timeframe that needs to be adhered
to in the contract. The majority of lenders require a clean
termite and moister letter prior to closing. The REALTOR in your
area would know these timelines.
Referrals If you are moving into an unfamiliar geographic
location, ask your real estate agent if he or she can refer you
to an agent in the area you are moving to. A REALTOR obtained
through referral will help in relocating and purchasing your new
home.
Select an Agent Carefully Each For Sale by Owner buyer needs to
interview a REALTOR and select one who is comfortable
approaching For Sale by Owners and working with them. Do not let
For Sale by Owners or new home site agents dissuade you from
using an agent. He or she may say that you will pay less for the
home purchase. In reality, a REALTOR’s professional advice may
save you from taking a property that could become a nightmare,
or help uncover a hidden jewel. Remember, if you’re searching
for a home you still need a realtor, to look out for your end of
the sale. Get representation on your side.
About the author:
Elaine VonCannon is a REALTOR with RE/Max Capital in
Williamsburg, Virginia, and she manages investment property as
part of her business. Elaine is also an Accredited Buyer's
Representative as well as a Senior Real Estate Specialist. She
has helped numerous clients invest in and make money on property
in Southeastern Virginia.
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