LESSON 5: Put Together the Right Buying Team
WHO WILL HELP YOU BUY?
- You have a lender
- You're PREAPPROVED for a loan
- You are ready to find the perfect home
IT'S TIME TO ASSEMBLE YOUR DREAM TEAM OF EXPERTS
- An agent
- A lawyer
- A home inspector
HIRING AN AGENT
Some people DO begin the home buying process on their own.
And that strategy may work well for you.
It's been our experience, however, that the right agent
can make your life a lot easier, and, more important,
can save you hundreds or even thousands of dollars
with the right advice and counsel.
(Print this lesson as a resource for your search.)
WHO EXACTLY IS THE RIGHT AGENT?
As a buyer, your ideal agent is someone who is not
going to sell you anything. He or she will help you
find and buy the best house or condo for YOU.
DO YOU KNOW THE TYPES OF AGENTS?
Yes! It does make a difference.
BUYER'S AGENT
He or she does NOT represent a seller or particular property.
A buyer's agent will sign a buyer's agent agreement with you
confirming that he or she is working exclusively for YOU.
DUAL AGENT
This agent represents buyer and seller in a transaction.
The reality of this arrangement is you (the buyer)may not
get full property information. An agent who is also
working for the seller cannot disclose everything to you.
LISTING AGENT
This agent advertises and lists homes. He or she works
for the seller of the listed home and benefits from
selling that home at the highest possible price.
SALES AGENT/NEW HOME SALES PERSON
These are the sales agents you will find at new home
or condo models. They work for a particular builder or
developer and earn commission by selling you one of
that builder's homes or units.
SELLERS AGENT/TRADITIONAL AGENT
These agents also work for the property seller;
they can't completely be a buyer's advocate.
A REALTORŪ
He or she is a member of a local real estate board that's
affiliated with the National Association of Realtors.
REAL ESTATE BROKER
This is an agent who is qualified to open and run
a real estate agency that employs real estate agents.
RESOURCE SITE: www.illinoisrealtor.org
Illinois Association of RealtorsŪ site - Consumer info.
SOME THINGS YOUR AGENT SHOULD DO
- Help you evaluate neighborhoods
- Provide you with access to all available properties
matching your criteria (using MLS)
- Help you evaluate mortgage terms
- Recommend strategies that can save you money
- Keep your search on target, focused on your needs
- Provide complete information about the seller
and the property
- Counsel you on what to say and what not to say
to the seller and seller's agent
- Make sure a FSBO (For Sale By Owner) home is
priced right
- Make sure a FSBO seller takes care of everything
that is generally the seller's responsibility
- Help you negotiate intelligently and write a good offer
- Point out an red flags/warning signs about
the property, the seller or the negotiation
- Ensure that you get the very best deal possible
- Help facilitate a smooth closing process
LINING UP A LAWYER
The role of your lawyer in the home buying process
is to be your advocate and oversee all legal documents
and decisions. Your lawyer works with your agent to
protect your interests and make sure the closing process
goes smoothly.
SOME THINGS YOUR LAWYER SHOULD DO
- Review the sales contract and help draft it, if necessary
- Work with your agent to review /resolve problems
found during a home inspection
- Help you avoid deadline issues in case of loan delays
- Help with title issues
- Review all closing documents (before, if possible)
- Explain what you are signing at closing, and why
- Make sure you are getting fees owed to you
- Make sure the deed is recorded correctly
A FEW GUIDELINES FOR FINDING THE RIGHT LAWYER
- Look for real estate and closing experience
- Ask your lender, agent or a family attorney for referrals
- Ask prospects what specific services you can expect
- Obtain a list of services and an estimate of fees
RESOURCE SITE: www.irela.com
Illinois Real Estate Lawyers Association site.
FINDING A HOME INSPECTOR
One very big and easy-to-avoid mistake home buyers make:
Deciding they DON'T need a home inspection.
This relatively small expense is SO worth it.
WHAT'S IN IT FOR ME?
- It can save you thousands in repairs
- It can educate you about your new home.
- You will get a crash course in maintenance.
A FEW GUIDELINES FOR FINDING A HOME INSPECTOR
- Look for proven expertise in home inspection
- Select a firm that is not tied to a seller or builder
- Ask your agent or lender who they would use
- Look for an inspector who belongs to a professional
association
NOTE: Home inspectors are not regulated, but associations
have codes of ethics and standards that members follow.
Ask for a firm quote in writing AND Obtain a detailed description of what the inspection covers.
RESOURCE SITE: www.ashi.com
The American Society of Home Inspectors site
TOMORROW: GET READY TO FIND YOUR DREAM HOME: Home Search is Next. |
