QUESTIONS AND ANSWERS: Here are some real questions and situations which I deal with everyday and some practical solutions.
*YourCornerBroker, I am now beginning to look for a home, what should I do?"
--The first thing you need to do is find out if you are able to get a loan and how much you can get. I suggest you do not got to a bank first, I suggest you ask those you know who might have recently purchased a home who they used. Many times the best referral is from someone who has just gone through the process. They also might have some tips on who not to use. As you go through the approval process find out about the expected cash that you will need for your down payment, closing costs, etc. Once you have a pre-approval then you are ready for the next step.
Deciding where to live is very important but it takes some effort. You should not just look on line in the area you are interested, you need to drive to that area during different times of the day. The more time you spend in the area the better prepared you are when you begin to actually look at homes. Once you have driven through the area, you have seen it during the weekend hours, weeknight hours, mid day, etc you will know if this is the right area. Look around to see who your neighbors will be, how they keep their yards, their homes, etc. You don't want to find out once you move in that there is a parking shortage once everyone comes home or there is a purple house down the street. If you only allow others to take you through an area, you will not see the purple house. They know better than to drive by the purple house and trust me there are many out there who did not do their own investigation and did not know about the purple house until after closing when it was too late. Do your own investigation before you begin looking inside the homes.
Once you have decided on the area then it is time to find a real estate agent, begin searching websites and calling on the For Sale by Owners. One misconception that buyers have is that they will get a better deal without a real estate agent. Trust me, that is not the case, it could happen but it so rarely does as those listing For Sale By Owner are basing their price on the market rate and do not discount the real estate commissions. You will find that they are asking close if not the same as those homes that are listed by real estate brokers. So do not think you will get a better deal by not being represented, you must be represented as there are too many things that could happen, will happen or might happen and real estate agents are your best friend. Even if you are considering a For Sale By Owner, do not think you cannot be represented, just tell the owner when you call that you do have a real estate agent and you want to make sure they will be compensated by the owner. Most will readily agree, remember they will only be paying half of the normal commission so it is still a deal for them. Also, do not allow the listing agent, the agent who is on the sign, represent you. They already represent the seller and to represent you means dual agency and that translates into you getting the short straw. Tell them you have an agent do not let them tell you that you cannot, it is the only way for you to go. Real Estate agents only earn their commission when the transaction closes, they are working on you behalf expecting to get paid at the closing table so you as their client should expect results.
