Nothing can be more impressive than a buyer who’s ready to tackle any challenges with his/her agent. Being prepared is not that easy though- there are a lot of things one should know before surrendering a lot of tasks to your real estate agent. There are risks and obstacles waiting around to pounce on you and your agent can’t protect you from everything. A smart buyer should not be an idle wanderer but an enlightened one. In other words, it is a must to understand all the mechanisms at work when buying a house. Here are the things new buyers should know before meeting with a real estate agent.
Know all the financial aspects
Buying a house isn’t easy at all. The first thing new home buyers have to consider is their available budget. You have to know what you’re going to use your money for in order to avoid wasting it. Every penny has to be valued. This is why it’s important to have a preapproved mortgage ready before meeting with a real estate agent. Mortgage contains the price of the house, interest rate, and the period until maturity. From this, knowing your potential amortization is useful in order to have a stable financial status after buying the property. The interest rate is also relevant, since it may depend on lender’s policy – which will be the bank if you opted for bank financing. A buyer also have to prepare for the down payment, which may be around 5-10% of the final price, in pursuance of closing the deal. These concerns shouldn’t just relate to being successful in buying the property. Concerning yourself to what happens after is highly necessary. Do these financial transactions include insurance for the property? (e.g., fire insurance). It’s critical to know what you’re paying for and make sure that they’ll all be worth it in the end.
Know the timeline
Before meeting with a real estate agent, being familiar with the timeline regarding this tedious business is important. Sometimes a transaction can take months. Typically, one can expect to close in 4-7 weeks. It will all depend on things like your financing, state of the market, how the negotiations were done and much more. Most of all, knowing the time needed to close the deal is imperative – not just for a potential buyer but the real estate agent too. An ineffective and lost buyer is the last thing a real estate agent wants.
Know when to make the right appointments
A new buyer has to keep track of the time spent with prefered real estate agents. After all, agents considers these meetings are very important. Real estate agents work on commission, and they have other responsibilities too. Not that a buyer necessarily have to adjust to them but being aware of their situation is useful. They will undoubtedly find a time for potential buyers – after all, they are their customer and the ticket to their salary. Still, understanding between a buyer and an agent is important and choosing the right time and place to discuss a potential purchase is necessary.
Know what you want and what to expect
Seasoned real estate agents will have an idea of their customer’s buying motivation. They keep track of buying trends because it has an impact on their marketing strategies. For example they know season when people are buying properties in Florida. Don’t allow your agent to guess why you need to acquire a property. Let him know.
Once on a meeting, a buyer need to optimize the time spent with an agent. Hence, letting them know what your expectations and preferences at the start of the meeting is a great way to save time. Being straightforward but proper at the same time is still necessary to convey ideas across. Be clear on what you’re looking for in a property (insurance, renovations, etc.).
A buyer should also make it clear what locations and possible alternatives he or she wants. Also mention prefered neighborhood, the benefits, amenities, and many more. It’s great to prepare a list of preferences so an agent will have an idea on how to turn this into a successful deal. After all, communication is vital and time is of the essence.
Know that an agency disclosure is important
Before setting out on this journey, a buyer needs to know about agency disclosure policy. The is an assurance by a real estate agency that foregoing transactions will be honest. And in event of an agent vanishing into thin air, they will make sure a buyer will have another agent without incurring any legal or financial obligations.
Sometimes, this contract also encompasses the agency’s responsibility to keep buyer’s valuable documents intact- keeping photocopies of these documents like bank statements and other personal data. That’s why it’s important to be kept informed of what to expect when it comes to this type of contract.
Know your agent
Working with a prefered agent in the first place should imply that a buyer has already did a little background check. Agents should be knowledgeable of the market and all the transactional processes involved. They should have access to information regarding the properties on sale and the market value of the properties. In general, a buyer would want someone who’s not only amiable but also discerning about these matters. Before setting a meeting with an agent, a buyer should already know the agents’ previous transactions. Try to look into his recently closed deals, what properties the agent sold, in what particular area, and how often did the agent closed a deal in the past 6 months. This should give a buyer an idea how competitive the agent is.
These are all the things a buyer needs to know before meeting with a real estate agent. First-time buyers can’t just depend on an agent to tell them all the things they needed to know. Buyers need to do their homework. After all, real estate agents will only make money from successful deals. That’s why buyers need to be knowledgeable of these transactions too, to avoid being blind and lost. Knowing all points above makes a buyer’s search for new property and agent a walk in the park.