The Value of a Great Buyer’s Agent goes beyond the time and money you save, it also includes peace of mind that all the boxes are being checked by a professional that deals with the boxes on a daily basis.
“Time is more valuable than money. You can get more money, but you cannot get more time.”
Not just years experience, but volume as a Buyer’s Agent | Some agents pride themselves as a listing agent (ratio should be no less than 40% Buyer’s Agent Experience)
Relatable Buyer Stories | Can they give you stories about past buyer transactions that show you they know their stuff?
Systems | A Great Buyer’s Agent has done this so many times they have a process (checklist) of what needs to be done and when!
Able to answer your questions | Are they open to answering all your questions and even “what would you do” based on your own history with buyer’s agents?
Can they express what their value is to you as your Buyer’s Agent? | If their value is all generic that could apply to any Buyer, then they don’t know you and your needs!
Post NAR Settlement
So we are still getting used to the ramifications of the lawsuits and the proposed NAR Settlement and awaiting for a definitive answer on everything we are being told, as to all the changes. There is one thing that seems to be more than probable as remaining and that is Buyer Broker Agreements–The Agreement between the Buyer’s Agent and the Buyer(s). This agreement is a very important document and if you are thinking of buying a home in the near future, I recommend asking to see this document well prior to wanting to see homes. While you are at it, ask to see all the documents you are going to be requested to sign either by the Brokerage you are thinking of using and by the State Real Estate Board you are in.
In the end a Great Buyer’s Agent is worth every dime and then some…like peace of mind that all the boxes are checked…
HAPPY HOME BUYING
Here is my YouTube Video Beyond the Door (Buyer’s Agent)
Some Questions to Ask Yourself When You are Thinking of Buying or Selling Your Next Home!
Do I love my neighborhood?
Am I ok with the time that it takes to get to the things I do daily or often?
What am I most dissatisfied with my current home that brings up the question in the first place?
Are any of the issues that concern me temporary?
What would my ideal home have, be located, include or not include?
Can you envision yourself in the new home and does it excite you?
If You Are Ready for the Next Step…Here are Some Questions to Ask Yourself to Have Ready for your Agent!
Where do you ideally want to be located?
How far in minutes from the things you do daily or often?
Single Family, Condo, Patio Home/Town Home?
HOA or No HOA?
How many parking spots do you need on a daily basis and for guests?
How many pets do you have or want to have and their size?
Is your family size changing in the near future?
Do you need a gas stove or is an induction stove your ideal?
Do you want a pool? Private, Community, or NO Thank you!
Guarded, Gated, or None of the Above?
Approximately what do you want to spend per month? (not just what you qualify for)
Talk to your agent and let them know while you may qualify for a certain amount that doesn’t mean you want to necessarily spend that amount.
Also, it is important to separate your “wishes” from your “deal breakers” and let your agent know which is which. Sometimes, one persons wish is another persons deal breaker, so if it not a deal breaker, bring it up and then immediately say it is NOT a deal breaker.
When you get the list of homes, also ask for the criteria used to create the list so you can double check that there isn’t more or less than what you want! And Do NOT Hesitate to tell your agent you want to change the criteria if you aren’t finding what you want. Expanding a couple of blocks one way or the other, or being ok with a den instead of a bedroom can open up a whole set of options!
Here are some ideas on the Buying and Selling Decision!
Some Questions to Think About Before You Call A Real Estate Agent!
What price point do I want to be in?
Do I want community living or single family home?
Do I want or not want a pool and/or spa?
Do I want it to be super walkable?
How close to Restaurants and Shopping?
How close to friends, family and/or work?
HOA or no HOA
You want to figure out what your ideal home would be like! You may not get 100% of what you are looking for, but you have a better chance of finding it if you are more specific than a 3 Bedroom/2 Bath in the City. You want to be able to articulate the most ideal scenario. When it comes to price point you want to be in a range and when looking exceed the range a little in case you are able to negotiate a lower price.
Some Questions to Write Out Before Interviewing Real Estate Agent!
What is the temperament I would prefer in an agent?
Are they available to block out a day or two at a time to show when you are in town?
Will they do FaceTime previews with you while you are out of town?
Have they had out of town Buyers before?
What did they find to be the most challenging?
Do they feel the Buyers enjoyed the experience?
What will be the driving arrangements when you are in town?
Working with out of town Buyer’s takes some organization! The schedule needs to encompass timing limitations and possible new home build hours, possible traffic, breaks in between to eat and drink, etc. it takes a lot of flexibility as well. So you want an agent that seems like they are up to the task and hopefully have done it successfully before.
Here are some ideas on how to find the right Real Estate Agent for you when you are moving to a new city!
Some little known positives about higher interest rates!
Buyer’s have less competition to buy a home
Seller’s more likely to accept a contingency
Seller’s less likely to ask for an Appraisal Guarantee
Seller’s more likely to pay Closing Costs
Seller’s less likely to ask for Post Possession
Buyer’s have more homes to choose from
When Interest rates are low, everyone is buying, including cash buyer’s…why? Because they aren’t earning money keeping it in the bank, and the real estate prices are historically going up in a low interest rate market, so it’s a win-win for cash buyers to buy. This trend reverses itself when real estate prices go down substantially, and then those investor’s with cash start buying again when the sentiment is that the real estate market has hit a bottom. Investor’s tend to stay out when the market is stable and interest is high.
What it was really like when interest rates were low…
Seller’s receiving multiple offers on the first day!
Seller’s only taking offers for 24-48 hours and only if you saw the property!
Seller’s asking to stay in the property after closing for free for up to 6 months!
Buyer’s offering sometimes 25% or more over list price and then guaranteeing the Appraisal Gap before even knowing what it would appraise for…
Seller’s laughing at a contingency offer and then tossing it in the trash
Seller’s dictating everything from title company, buyer paying all closing costs (including those normally paid by seller’s), and when closing would be, denying homewarranties…
SELLER’S ARE IN CHARGE WHEN INTEREST RATES ARE LOW!
Here are some ideas on getting the Seller to help reduce your interest rate!!
QUESTIONS TO ASK YOURSELF WHEN YOU ARE BUYING A HOME
If I don’t have a pet today, will I maybe want one in the future?
If I have one pet today, will I maybe want more than one in the future?
What type of pet would I want in the future and what would the adult size be?
Have you considered the various factors of your pet like
Have you considered the various factors of your pet like
HAVE YOU CONSIDERED THE VARIOUS FACTORS?
Where would the relieve themselves (inside options?)
Where would we go for walks
Are there other similar pets to play with
Do they need room to play on their own outside or is direct supervision OK?
HOA’s and other Rules
Unfortunately, when you live in a Condo and/or have an HOA there can be restrictions on the type, height, weight, and other limiting characteristics for the type of pet you may have. I actually came across and HOA that said NO Birds. In the end it wasn’t worth the fight with the HOA, it was just easier to move on and buy another home. But, if pets are a big part of your life, you may want to consider a NON-HOA home for your next purchase. You will however, have to abide by the City rules, mostly related to leash laws and noise rules and regulations. So think through your pet plans before finding yourself in a tangled web of fines and/or litigation.
Puppies now, but not for long…things to think about with your next move!
Not responsible for things like landscaping, pool maintenance, outside storm issues
The Cons of living in a Condo!
Pesky neighbors
No private yard
HOA Fees that may increase or have assessments due to underfunding or under accounted for expenses
What makes an awesome Condo!
Concrete or sound proofing walls, floors, and ceilings
Lot’s of areas for gatherings, BBQ Grills, Outdoor Patio’s, Pool & Spa, Indoor Clubhouse, walking paths, dog runs, and rooftop entertaining. (Think options!)
An HOA that is financially sound and well run and financials that seem strong. A steady increase in HOA dues and not a jump. Surprisingly, those HOA’s that charge a fee when there is a sale and those funds go into the improvement of the building, are also a good sign.
Walk-ability to whatever you love! If you love baseball then maybe a Condo that is right next to the Diamondbacks Stadium is for you. If you like Shopping then a Condo next Scottsdale Fashion Square may be your ideal condo. Or maybe you are a Capital Grille fanatic (like me) there is a condo within walking distance of there, too!
If you are thinking that your only options on a low appraisal is to agree or get out, then you would be sadly mistaken! There are a lot of different options that I would consider (and so have my clients) as a win/win on a low appraisal. Let’s consider some scenarios:
Scenario 1-The Appraisal Is Just Not Making Sense! So you look at the details and the bedroom count is wrong, the square footage is wrong, the contract price you agreed to is wrong, the Loan Type is wrong (FHA instead of VA or Conventional), the comps are in an area so far away in another city that you are wondering what the heck is going on with this appraiser!! First of all go through everything in detail and make detailed notes and gather your back up to prove your side. Sometimes, an appraiser is going so fast that they miss a Counter Offer or maybe there is a discrepancy in the listing and the county records on the square footage or they just get your file confused with another. Stay calm and request a reconsideration and document all of your findings without using the words “the appraiser was wrong”. Saying the appraiser was wrong will not get you anywhere and they will read everything you submit. So start by saying that you appreciate the time and effort they have put in for your appraisal, but that you noticed that the Contract Price was for $725,000, however, the Counter Offer #3 notes the Contract Price agreed upon as $750,000. Or that you noticed that the loan was for a FHA loan, however, the Buyer will be getting Conventional financing. You get the idea, the more nuanced you can be, the further it will get you.
Scenario 2-The Renegotiation! So you have looked through the appraisal and either you agree with the appraisal or the time needed to get a reconsideration done isn’t enough to close on time, or you tried the Reconsideration to no avail; Now is time to Renegotiate! Have the Seller Offer to buy down some of the interest and ask the Buyer to put the down payment partially to the under appraisal portion of the home. This option can be done in conjunction with coming down on price as well, but first find out how much buying down the maximum amount of interest will cost and provide in a return on investment. You must know this FIRST before negotiating a further buy down. If an agent tells you otherwise, ask them about their previous experience doing this, my guess is never or they wouldn’t try to get you down on price first.
Scenario 3-Commissionectimy! So sometimes a buyer is only putting the minimum amount down and there isn’t anything that can be done to lower the interest. In addition this works on smaller appraiser issues like $5,000 or so. What I do is tell the Buyer’s agent that I am willing to match them dollar for dollar in reducing the commission to get the deal done, then depending if there is a short fall ask the Seller for the difference. A Seller will be impressed that the two agents are already doing their part to make the deal happen.
So in summary there are a lot of options and they are NOT mutually exclusive. I have done all of these on just one home in some cases and got the deal done! Sometimes, only 1 or 2 of the options get it done, and sometimes both parties have to part ways…but before you do that give it your best shot to get past a low appraisal!!
So when you are considering an Agent to help you in your next real estate transaction, what do you think is important to you? Write those traits down and then put them in order of importance. When you write down your order of importance, go from top to bottom and ask this question, “If this was the only attribute that they had would that be ok?” Probably not, but let’s put them in a group. Then look at the list again from bottom to top and ask this next question, “If this was the only attribute that they did not have would that be ok?” This will obviously garner a different result. You will soon find what is truly important to you!
What do I think is the top attribute? For me, I think communication a) Timing–maybe you have a job and you can only talk after 7pm does your agent understand that? b) Method–So you are super busy and you prefer texting but your Agent wants to email all the time and you daily get hundreds of emails so you don’t see it. c) Content–Is the information you need done concisely or is there a story every time.
