1. Get representation.
    I found my own home (a condo) and didn’t use a real estate broker because I don’t like to be ‘sold’ on things. I don’t like being ‘sold’ a car, I don’t like haggling for goods, and I certainly didn’t want to be ‘sold’ my new home! I found the place I wanted by myself through looking at real estate magazines, contacted the listing broker directly and “negotiated” it myself. I even got $2,000 off the price.
    Of course, it wasn’t even worth what I paid, but I didn’t know that because I didn’t have a knowledgeable professional representing my best interests. I could have saved much more and still have gotten the home. I didn’t even have an inspection – I looked around and said it looked fine. I didn’t review condo board records – and could easily have missed any huge issues looming, but hey – I didn’t need someone’s help ‘selling’ me a home!
  2. Buyers don’t pay real estate commissions on purchases – sellers pay for that.
    Buyers don’t want to pay ‘huge commissions’ to a broker. Often, the buyers think they can save money off the price by going directly to the listing broker. Not true. Brokers will tell you that everyone pays real estate fees, as it is built into the sales price. But, with the exception of For Sale By Owner transactions, the actual cash out of pocket to pay the real estate fee typically comes from the seller proceeds, not the buyer. Sellers pay the real estate commission to the listing brokerage firm. The listing firm and selling firm typically split that commission and then pay their brokers based on their compensation plans. So, a broker representing the buyer in effect gets paid by the sellers, not the buyers.
  3. Lenders are trying to help you – help them do that.
    Lenders need to have a good credit score for you to get the best possible rate and loan program. They will ask for lots of information and may ask you to get explanatory letters. Do it quickly. And DON’T MAKE BIG PURCHASES during the home purchase process! There are many loan programs available out there. Let your lender help you decide what will help the most. And let your real estate broker suggest lenders for you. No, brokers don’t get rewards or referral fees from lenders. What they get is a good partner who keeps everyone informed, and who they can contact to get quick updates. Remember, they are all trying to help you.
  4. Don’t pick the first house you see.
    It can happen. But if you don’t look at anything else, you might miss the one you really wanted. You should see lots of homes before picking the right one – and it’s okay to go back to the first one, but only after comparing it to other homes! Online real estate websites are a great starting place, but you may be missing the one that’s right for you. And information can get outdated quickly in a speedy market. Your broker can help get you the best information on homes the minute they are listed.
  5. Be realistic and flexible in negotiations.
    Not doing so can cost you your home – think about what will be important five years from now: Did it matter that you lost the home you really wanted because you wouldn’t split the difference with the seller on that $3,000 siding repair on your $375,000 home purchase? I am not saying to let people walk all over you. Pride easily gets in the way of many real estate transactions. But frankly, no one will remember it in five years. But if you lose the home of your dreams over $1,500 (less than 0.5% of the sales price), will that be worth it? If you aren’t realistic, everyone loses. Listen to your broker.

BONUS WISH!

  1. Insist on being informed.
    Good brokers and lenders keep you informed throughout the transaction. When I bought my first home, I just waited for the broker to contact me. I had no clue what was happening. Good brokers and lenders keep you consistently informed. No surprises. If something happens, the broker or lender should be contacting you without haste. Find the professionals that will do that for you.

 

Copyright© 2023 by Don Elliott, Managing Broker and REALTOR® with Coldwell Banker Bain Real Estate and the WhyWeLoveSkagit Team.

We believe that our clients deserve objective and factual advice about buying or selling their homes. We’re fun to work with, but we are serious about who we represent. We have extensive backgrounds in real estate and financial services.  We have over 50 years of combined experience in real estate sales.

If you are considering buying or selling your home, it can be a daunting, challenging and stressful time.  We are here to make the transition as easy as possible for you, help you make the right decision that works for you – and help you get the best value!

 

Comments are closed.