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Buyer’s Agent
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Can you afford to lose $800 or more when trying to buy a home?

These are true experiences through my eyes as a listing agent.   I put one of my listings under contract twice and both times the buyer had to cancel due to not being able to get financing.  Both buyer’s had their own buyer’s agent.  Both buyer’s agents never worked or recommended the lenders the buyer’s chose.  Both buyer’s agents did not enter into the process of getting the buyer qualified for a loan nor did they speak with their lender when the offer came in.  Both buyers provided pre – approveal letters with their offers.

I always call the buyer’s lender on behalf of my seller to find out how the lender qualified the buyer.  Did the buyer actually provide documentation to the lender or did they just fill out an application and a credit report was ran.  In both cases both lenders verified they had looked over the documents the buyer provided and were confident they could get a loan.

What happened?  The first buyer we had was put in the wrong loan program by the lender.  How did it happen that the lender put the buyer in the wrong loan program?  The lender assumed the buyer had a job in the area instead of looking at the application.  The buyer spent money on inspections and an appraisal only to find out they did not qualify for that loan program.  I tried to talk with the buyer’s agent to put the buyer in the correct loan program through one of my lenders, but the buyer got cold feet after the experience.

Our second buyer who was again pre – qualified found out they could not get financing after they spent money on inspections and an appraisal.  What happened? The loan officer did not know the loan policy when it came to dept the buyer owed and did not calculated the dept to income ratios correctly.  Had the loan officer done this correctly from the get go the buyer would of never qualified for a loan from day one.   I reached out to the buyer’s agent to have one of my credible lenders look at the buyer finances and that is when I found out the problem.

 

In both instances the buyer’s agents sent over the cancelation agreement without consulting with me to see if they could re-negotiate the deal or save the deal using another lender.   After I got the cancelations I tried to save the deal.  The buyer’s agent should of tried to save the deal for their buyer instead of just sending the cancelation over.  The buyers both spent a lot of money.

You here all the time every Realtor is a like and it doesn’t matter who you get to list or buy a home from.   It’s just not true.

I can guarantee you neither one of these buyers had a buyer’s agency agreement along with the services that buyer’s agent would provide them.  Both buyer’s lost a lot of money and on the listing end it wasted a lot of people’s time, cost my seller undue stress and money, cost me my commission twice and the title companies pay check twice.

As a listing agent I am limited on what I can find out from a lender how qualified the buyer is.   The lender is the one who should know loan policy, and what loan program the buyer can fit into based on their credit report and documentation.  If the lender tells me they reviewed the documentation and the buyer is qualified, I have to believe them.   The best defense for the buyer is the buyer’s agent they hire from the get go.

My best advice to buyers or sellers is make sure whoever you pick to buy or sell a home through that the services the real estate agent will provide are in writing and you read what those services are.  When it comes to financing make sure your buyer’s agent works with credible lenders and go with a credible lender your real estate agent recommends and make sure your agent is involved with the lender from day one of you looking at homes.

According to the National Association of Realtors 1 out of 3 closings fails due to the buyer not being able to get financed. 

 

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Do you really need a Buyer’s agent to help you buy a new house?

Q:  What can a buyer’s agent realtor do if you are buying newly constructed home in a brand new neighborhood. I’m interested in new homes built by Pulte.   It seems easy to do on your own. I have done this before, and I negotiated myself with the selling agent working for the developer.

 

It’s the agents expertise in several areas of the real estate business that brings value to the buyer. It’s not just about the price a buyer pays for a home it’s the whole package that comes with buying real estate.

I personally sell homes in Pulte neighborhoods so hence my opinion.

Depending on location new homes today are like buying new cars. They depreciate the minute you move into them. How do you know this? Look at the history of the resale market in the neighborhood with your buyer’s agent.

Several people have bought new Pulte homes that could of saved a bundle and had a better home if they bought a resale only 8 years old in the same Pulte neighborhood. It amazes me that buyers don’t even know re sales are available in the same Pulte neighborhood because they can’t get passed the new sales office. It amazes me that buyers don’t know there are two Pulte developments in my area.

A builder such as Pulte keeps their prices the same with or without a real estate agent because they know people talk about what they paid and Pulte needs their homes to appraise for the value they want to sell them at. Keeping prices the same stabilizes their base price and allows them to increase their base price. Pulte also knows the value of Realtors and wants to keep them happy.

It’s what you don’t know that always comes to bite you in the butt.

The most important thing about buying a new home in planned development is the lot and your buyer’s agent is the one to help you pick it. There is more to picking a lot than just the view.

Your buyer’s agent is going to make you think about things you never thought of so you can make a better buying decision.

Is the builder’s lender the best deal verses another lender?

What are the best upgrades to put in the home to get the most value out of the home when you go to resale?

When building a home would a typical buyer know what the most important construction phases are especially if building in a different state? Most people think the county inspectors are all they need to check on the construction. Think again!

Biggest mistake a buyer makes when building a new home is they think everything is going to work perfect. Not! What about the nail that went through the water pipe or pipes? Missed wiring anyone?

What do buyer’s know about venting a new home? Builder cutting corners or are they doing it right?

I always feel that people who know the value of an educated person helping them and understand that hard working people should get paid for their knowledge, advice, and time are the ones that appreciate a buyer’s agent.

 

Dawn Rupersburg Realtor Ocala FL