Demystified: The Home Buyer Consultation
So if you haven’t learned from my other blogs that I am a
big proponent of the buyer consultation, let me be clear: I am a big proponent of
the buyer consultation! Most buyers (even some agents) have never heard of a
buyer consultation and typically react negatively when I suggest meeting for
coffee to discuss what you’re looking for.
I get it. You can look for homes online and you’re more
informed as a buyer class than any other buyer class before you. You just
contacted me because I can get you into the door, and you want to limit the
amount of time you’re with me, one of the least trusted professions in the
world. But, let me throw it back on you – do you want to work with someone who
does not insist on buyer consultation because they’re afraid of losing a
commission or do you want to work with someone who has the heart of a teacher
and takes time to answer your questions and fill in potential blanks that could
save you thousands of dollars?
That being said, I wanted to explain what happens during a
buyer consultation and why it’s important, so without further ado…
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| Image Courtesy of Pinellas Suncoast Home Sales |
1. Discuss what you need / want in a home and separate them.
When I ask buyers what they’re looking for, a fairly common
answer is “3 Bedrooms, 2 Bath, and some land.” I could find you a ton of properties that
match that description, but in my experience it’s not all about marking the
check boxes – it’s about the feel of the home. It is extremely difficult to
find that “feel” you’re looking for without delving deeper. For example, “some
land” may mean 1 acre because any more would be too much to maintain where
another buyer would say a minimum of 5 acres. I’ve had buyers call me, tell me
a home is perfect for them, they want to go see it immediately, but after
meeting change their mind because they didn’t realize it was in a flood zone!
Once we’re on the same page about what you’re truly looking for, you won’t need
to take time off work to look at homes that don’t cut it!
2. Discuss the entire home buying process, the length of time it will take to complete each phase, and what it will cost you to purchase.
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| Image Courtesy of The Odyssey Online |
Buyers are incredibly informed, more so than previous buyers
because the internet is a wealth of information. However, there’s not a lot of
information out there about the process, time, or cost to purchase. The typical
home search in my area is about 3 months. A ratified deal can take as little as
4-5 weeks or as much as 8-10 weeks. It’s going to require a significant
investment of your time and energy, not to mention money! Many buyers think
they don’t have enough money saved for a down payment and are shocked to learn
that a conventional loan (used to be 20%) is now only 3%. Also, there’s still a
couple 0% down loans available in the Lewis County area. But’s that’s not all
the costs involved. You still have to save for the inspection, appraisal,
closing costs, and other miscellaneous fees typical in a contract to purchase.
One fee you won’t pay is your Buyer’s Rep commission!
3. How Realtors get paid and why it’s important.
Many buyers don’t want to use an agent to purchase because
they don’t want to pay a commission. However, buyer’s don’t pay their Realtor’s
commission – the seller pays both! Why wouldn’t you use professional
representation if it’s free? So, the commission on a house is set by seller and
seller’s broker. Typically, it is split in four between both agent offices and
both agents. Nobody gets paid unless the deal gets closed! This is a good
system that makes agents work harder and think outside the box to keep deals
together, but you could feel pressured to complete the deal as well. This is
another reason to meet with your agent first and see if you like them and can
trust them. If things start to go south, you want to be confident they’re
fighting for you, not their commission.
4. My value to you and why you should work with me instead of other agents.
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| Image Courtesy of LinkedIn |
I hear this a lot in the agent community said to buyers and
sellers: “There’s really no difference between agents, just pick someone you
like and get along with.” While you do want to pick someone whom you don’t
hate, any agent who tells you there is no difference is a red flag. First, they
say there is no difference because they don’t know any better. Second, if they
don’t have the ability or confidence to separate themselves from other agents,
how hard do you think they are going to fight for you if they don’t fight for
themselves. Third, you’re not going to be receiving the best service possible.
There is NOBODY providing better service or results than me, and you can take
that to the bank – no, literally, you’re going to save thousands with me than
with the average agent (and I’ll show you the stats)!
5. Legal disclosures required by Government.
Real estate is becoming more and more regulated, which is
both a good and bad thing. I provide you with legal disclosures upfront,
allowing you to actually read through them rather than having you sign off on
them when writing the offer. Also, I provide you with the Realtor Code of
Ethics so you know the rules I adhere to.
6. What does an actual contract look like?
A real estate purchase and sale agreement is multiple pages
long, sometimes 30 pages or more. I provide you with the main form where all
the meat and potato terms of the deal show up. Of course, I explain everything
while making the offer, but it’s always a good thing to be knowledgeable of
what’s required. And you’ll be prepared before actually seeing the large stack
of papers that you’ll have to sign/date/initial over and over and over again!
7. What’s the next step?
Finally, you’re going to leave the meeting with a game plan
of what needs to be done over the next few days and the course of the deal.
This is one of the most frequently asked questions I get, “What happens next,
where do I go from here.” If you don’t have the consultation, you’re at the
whim of your agent who let you in the door after just meeting you at the house!
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| Image Courtesy of Next Step Connections |
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Hopefully this blog has shed some light and Demystified the
Home Buyer Consultation. On the same note, hopefully you see the intrinsic value
of meeting with your agent before looking at homes. If you want a glorified
gatekeeper, there are plenty of agents ready and willing to take that call. My
background is customer service so I do things a little differently. If your
agent doesn’t take the time to truly understand your needs and provide
Extraordinary Service, how are they going to deliver you Extraordinary Results?
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