1. Beware of giving the Seller access your financial information.
The Seller's Agent is legally obligated to divulge any financial information he knows about you to the Seller. Your negotiating power when making an offer to purchase real estate may be adversely affected.
2. Beware of giving the Seller access to your personal information.
Whatever you tell the Seller's Agent about your motivation to purchase a home can affect your negotiating position. If you give the reasons you like the house or its location, how soon you need to make a housing decision, or the like, the Agent must tell his Seller whatever he has learned about you.
3. Understand the real estate agency’s role.
Many Buyers are not aware of the roles and duties of real estate Agents, in particular who does the Agent represent. There are three basic types of real estate agencies:
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Traditional real estate Agents list properties for sale and are obligated to try to obtain the highest price and the best terms for the Seller.
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Dual Agents represent both Seller and Buyer, but his loyalties are divided making it difficult, if not impossible, to successfully represent either party.
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Exclusive Buyer Agents represent the best interests of the home Buyer and will negotiate the lowest price and best terms for the Buyer.
4. Avoid paying 2 Agents.
The real estate company advertising a home will negotiate against you. If you are shown property by another real estate company, even if it did not list the home, it will also represent the Seller. Both listing and selling Agents are working on behalf of the Seller, not the Buyer.
5. Know your rights as a home Buyer.
Buying a home is probably your largest financial purchase of a lifetime. You need to be an informed consumer.
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Don’t make an offer to purchase property without the facts. Simply discounting the listing price may not result in the best purchase price. You should know the background of the property and the prices for which comparable homes have sold in the area before you make an offer. The Seller's Agent cannot help you determine the offering price, but your Exclusive Buyer Agent can do research and prepare a comparative market analysis so you can make a fair market offer.
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Know what you can afford. You should obtain a prequalification from a reputable mortgage lender so you will know exactly how much house you can afford and the amount of the monthly mortgage payment that is comfortable for you.
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Get a home inspection. You should have a qualified home inspector examine the property. Often, the Buyer’s Agent will attend the home inspection with the Buyer. Any major negative findings can be used to adjust the price and terms.
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Don’t rely on verbal commitments from the Seller or his Agent. Verbal promises are not binding. Make sure that everything you negotiate with the Seller is included in the written contract.
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Know what personal property in or is not included. Is the Seller taking the refrigerator, ceiling fans, or window treatments? You need to know exactly what you are buying and make sure those details are included in the contract.
6. Obtain professional advice to review the contract. You should never sign any agreement without fully understanding it, or having it reviewed by an attorney. A real estate attorney can include changes to standard purchase and sale agreements for your protection.
