Get a Real Estate Agent

Working with a Buyer's Real Estate Agent can save you a tremendous amount of stress and confusion. And the best part of all this, their services are 100% FREE to you!

What is a Buyer's Real Estate Agent?

A Buyer's Real Estate Agent is a real estate salesperson or broker who has committed to working exclusively with you (and not the seller).

The benefits of engaging a Buyer's Agent includes:

1. Committed to representing you:

Both agents can set up house tours, but unlike the listing agent who represents the seller, a buyer's agent protects the buyer's interests during the crucial negotiating and closing process. The agent bargains with the seller on the selling price, facilitates the home inspection, negotiates contingencies and assists the buyer through the closing paperwork.

2. Spot red flags:

You might say home buying without a buyer’s agent is a little like grilling tenderloin without a meat thermometer: you might not know there’s a problem until you’re sitting at the table. Working with an experienced buyer’s agent can make it easier to identify and navigate issues early in the process.

3. Save money:

Typically, the seller pay's both the listing and buyer's agents' commission. Therefore, there is NO COST to you when engaging the services of a Buyer's Agent. With the guidance of an experienced agent, you can save money through negotiations, and even potentially receive seller or agent credits.

Go House Hunting

You have your Pre-Approval in hand, and you have met your REALTOR®, now it is time to go house hunting!

Prior to physically viewing homes, sit down with your REALTOR® to narrow down the search:

• Price you can afford
• Number of bedrooms and bath
• Features you NEED and amenities you WANT
• Ideal location (to work, school, shopping, etc.)

House hunting should be fun and adventurous. However, it may also take perseverance to find the right one, and tenacity to get your offer accepted.

Keep in mind, if 10 buyers place an offer on a particular home, 9 buyers will not have their offer accepted. Hence, it is important that you work with an experienced agent, and you shop within your range, (not at the top of your range—you need room to negotiate).

Make an Offer

You have found the house of your dreams, and now is the time to put on your game-face and start bargaining.

Speak to your REALTOR® about the current market conditions. It may be a:

• Seller's Market: This is where there are limited homes available on the market and there is high demand. As a result, seller's can command higher prices and terms.
• Buyer's Market: This occurs where there are ample number of homes available and seller's have to compete for your business. You, the buyer, hold most of the cards.

In times where it is a seller's market, you may have to offer a price above, and sometimes well-above, the asking price. Keep in mind, the asking (listed) price is an opening of the conversation (negotiation); it doesn't necessarily reflect market value of the home.

There are ways to make your offer stand out, including:

• Higher down payment
• Shorter escrow period
• Offering to cover some of the seller's closing costs
• Removing some contingencies up front (follow your agent's advice on this option)

Hidden Costs of Buying a Home

While this may not be a "step" in buying a home, it is important that you understand that there are some purchasing costs you may not be aware of.

These costs are in addition to the expected purchase price (the amount you and the seller agree to) of the home.

Hidden (unexpected) costs include:

1. Earnest Money Deposit (EMD): This money is due at the time your purchase offer is accepted. It is your "good faith deposit". In other words, it is your demonstration of commitment to the seller that you are willing to place some of your own money at risk should you not fulfil your end of the agreement (terms in the contract). It is generally calculated at 1-2% of the purchase price, and is due within 1-3 days of entering escrow. The EMD is part of your down payment. It is your money unless you default on the purchase contract.
2. Down Payment: While this shouldn't be a "hidden cost", you must budget and be prepared to come to the closing table with your down payment in a form of a wire transfer or cashiers check. Your down payment depends on the loan type you choose or the available cash you have selected. Some loans have rules on where and how you receive your down payment, please talk to your lender.
3. Home Inspections: It is highly recommended that you hire a professional to inspect the home prior to your purchasing. The home inspector will thoroughly survey the home, and prepare a report noting any deficiencies he/she may have found. A home inspection can cost between $300 and $700, depending on the size of the home, and your location. The findings from this report may be used as negotiating tools to:
   • Ask seller to make specific repairs;
   • Request a credit for the deficiencies (which may be applied to your closing costs;
   • Negotiate a lower purchase price if the repairs are significant.
4. Escrow Closing Costs: These costs include title report and title insurance fees, escrow servicing fees, recording fees, and loan origination fees. Expect these costs to equal 2.0% to 2.5% (and in some areas, up to 3.0%) of the total purchase price.

Open Escrow

Escrow is a neutral third-party entity that coordinates and facilitates the transfer of the title (or deed) of the property you are buying into your name.

Many title companies and banks act as escrow companies.

Escrow also transfers the monies received from you (down payment) and your lender (loan) to the seller, and records your mortgage (the lien your bank has against your property).

When you hear the term open escrow, this means that you and the seller have mutually accepted the terms of the purchase contract, and have agreed to move forward with the sale/purchase of the home.

It is during this escrow period that:

• Buyer transfers the earnest money to escrow
• Seller discloses all known material facts about the house
• Buyer reviews the disclosures
• Buyer investigates home for physical deficiencies (by way of hiring professional inspectors)
• Repairs are negotiated (if applicable)
• Title to property is reviewed and any liens or clouds are removed
• Loans are underwritten and funded
• Down payment is received
• Title is transferred

Close Escrow

This is the day that you are looking forward to. It may have taken 15 to 45 days since you placed an offer on the house, but the journey is over and your REALTOR® hands you the keys to your new home.

Don't forget to:

• Transfer the utilities into your name
• Change the locks on your new house
• Make any repairs or modifications (painting, replacing flooring, etc.) prior to moving in...it is easier beforehand
• Enjoy building equity in your new home!