What Should a Real Estate Agent Do For You?
Filed under: Home Buying, Real Estate Investing, Real Estate Agents
You’ve made up you’re mind—you’re going to buy. You know what kind of property you want; you have a good idea of the neighborhood or kind of neighborhood you want; you’ve put together a clear picture of your financial affairs; and you’ve met a real estate agent who strikes you as honest, knowledgeable and hardworking. Now you must let the agent show you how to benefit from his or her professional expertise. A good agent will steer you in the following ways.
What Can You Afford?
Are you employed and how steadily? Is your spouse or partner employed and involved in the transaction? How much do you earn
and how much do you owe? How much can you comfortably pay monthly on a mortgage? Agents who ask these questions are not
being nosey and intrusive. They need to be able to select properties at a price level for which you are an acceptable risk. They know what credit lenders will be willing to extend to someone in your financial state. Agents can give you a realistic view of what kinds of properties you are likely to get a mortgage for.
What’s the Market Like?
We all know that on a national level, real estate prices are affected by mortgage rates. However, national prices are also affected by inventory, sales rate, construction starts, and other factors that your agent should be familiar with. On a regional level, agents should know what’s happening statewide and have the latest information. They should know the pros and cons of different neighborhoods and be able to surprise you with why you should, or should not, consider particular areas. Finally, an agent should know what local properties have been selling for very recently, how long the properties stayed on the market before being sold, and how many are being sold each week.
A Property Search
In the traditional property search, an agent would drive you from house to house until you found one that was right for you. Online listings have taken much of the driving and legwork out of this. You can get valuable feedback from agents by initially showing them printouts of online property listings that appeal to you, regardless of their locations. Agents can tell what you would pay for such a property locally, in what neighborhoods they are most likely to be found, and how many are currently on the market.
Negotiation
When you find a property to buy, try your agent’s negotiating skills. Agents know what concessions to ask for. Price is the obvious
thing that most people want to negotiate, often overlooking more easily obtainable and even more valuable concessions such as financing terms, date of possession, repair or replacement of damaged items, and inclusion of furniture or other costly items.
Due Diligence
Before finalizing a purchase, you need to make your own efforts to ensure that all is well with the property. This is a process known as due diligence. Your investigation must be on two fronts: the property title and the physical condition of the building. Your agent should be able to refer you to a real estate lawyer to check the property title and find you a reliable consulting expert on building structure, plumbing, electricity, pests and so forth.
Closing
It is in an agent’s best interest to see that a deal is completed, so don’t hesitate to ask for assistance with the closing process.
