Home Buying

Affiliated Business Agreements

Watch out for agents that want you to sign an Affilaited Business agreement list or any such disclosure.  What does this mean to you?  This should tip you off that you are working with a company that gets paid or benefits from you using a specific company or service.  This means the agent is more likely to refer you to a title company, lender, warranty company, etc. that they have a business relationship with.

Why is this bad?  Your agent should be free to look out for you, not the company they are affilaited with.  They should have the freedon to call around and get the best prices for you or research the best warrranty company for your needs.  Affiliated businesses produce the opportunity for a conflict of interest.

At Real Estate Unlimited, we have no such allegiances.  We work in your best interest, not ours.  The agents with our company are free to recommend any company they think with be good for you.  We get no kick-backs from anyone.  Don't you prefer for your agent to be looking out for you?

...

A Great Agent can save buyers money by finding a property that fits the buyer’s loan.

 Is that 100% financed loan helping save or spend more?

Recently, a buyer came to us pre-approved for 100% financing.  She wanted a house in a nice neighborhood in town.  She wasn’t a veteran and it turned out that the loan she was pre-approved for was limited to a rural area, not where she wanted to live.

We had to go back to the lender to look for alternative ways the buyer could purchase.  In her case, she needs to wait until she saves a little more money for a down payment.  The lender could have explained this to her but didn’t. 

We often work with FHA buyers and have to explain to them that we must find a house that doesn’t need excessive repairs.  Recently, a couple found a large house with a huge outbuilding on 2 acres.  It sounded great, but upon looking closely at the property, we discovered that it needed a new roof and lots of exterior painting. 

In reality, the buyers couldn’t buy that property unless we negotiated in a new roof and all the exterior repairs into the transaction, but from the seller’s viewpoint, if the seller had to do all those repairs, they would be able to get much more for the property.   We found them another great property that worked with their financing.

In both cases, we didn’t waste the buyer’s money on inspections and appraisals, only to find out that the transaction couldn’t close.  We protected the buyers by matching the property to their loan.

...

A Great Agent can protect buyers from excessive costs.

Find the right loan.

Buyers don’t know what’s normal. 

Sometimes, they search for lenders online and look for the best deal on the interest rate.  They are unaware of rates a Great Agent can get for them through a preferred lender.  A good rule of thumb, get your loan from a lender you can sit down and speak with in person.  You’ll get the best deal from someone your agent knows.  The lender will most likely give you a great deal because they want future business from that agent.

The same thing happens with closing costs.  If the buyer doesn’t have another closing cost estimate to go by, he won’t know he’s paying way more than other buyers who are buying in the same area and price range.  A Great Agent can help them check these things out. 

Beware if a listing requires you to close with a specific title company.  Don’t make the offer until you have checked out what the closing fees will be.  You’d be surprised just how expensive it can get.  Work with a Great Agent and save lots of money!

...

The Big Picture

Knowledge is power.

To not break the bank when considering buying a home, ask about any issues or questions that arise:

  • Tax reassessments/exemptions
  • Referrals to qualified contractors
  • Advice on additions/remodeling
  • The Big Picture


The first thing to do is sit down with your agent to discuss the big picture.

For instance:

If you think through how long you plan to live in your next house, it will help determine which homes are appropriate to even consider.

Usually, the shorter the time, the less remodeling or redecorating it will be reasonable to do. You may need to find a house already updated - or a steal of a deal.

...

Home inspectors are not all alike!

HVAC

Now, most home inspectors are licensed, but so are drivers. The license doesn’t make either one good at what they do; that takes practice, skill, continuing education, and good customer relations.

Don’t let a new home inspector practice on you!

Make sure the home inspector belongs to a professional group; ASHI, NAHI, etc.

Some employ a group team method. In this way, you get more specialized expertise. For example, most inspectors are limited in the inspection of an HVAC system. Teams bring in a licensed HVAC inspector who does a more thorough inspection.

Teams take a shorter amount of time.

...

7 Common Home-Buying Mistakes: (From Real Estate Focus Newsletter)

Confused about Home Buying...

1) Not Being Prepared

    • Pre-approval
    • The Big Picture
    • Agreement between buyers

2) Thinking Too Long Term

    • Things can change

3) Waiting Too Long

    • Interest going up
    • Prices going up

4) Focusing on a Single Feature

    • Interior Decorating
    • Exterior Landscaping
    • Price

5) Overlooking New Construction

6) Working without an agent

7) Rushing the process

    • The negotiating process
    • The loan process
    • The inspection process
    • The appraisal process
    • The title process
    • The insurance process
    • The re-inspection process
    • The closing process
    • The process process

(From Real Estate Focus Newsletter)

...