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Finding the Right Home |
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 II.A -
Deciding What You Want II.B -
Finding the Right Home II.C -
What to Look For II.D -
Negotiating the Purchase Price II.E -
Contingencies in the Offer II.F -
Overview |
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Where do you begin?
How do you start the search for a house? How can you find a home that you can afford and that comes closest to meeting your personal needs? The first step is to identify candidates from all the houses that are on the market. To find a house that is right for you, you will want to check on as many sources as possible.
Word of mouth
Now is the time to let your friends and acquaintances know you're in the market
for a house. If you get lucky, you may hear of houses that are just coming on
the market.
For sale signs
Driving or walking around in search of for sale signs may be worthwhile, particularly
if you have a good idea of what neighborhood interests you most. This
is a particularly good way to find houses that are being sold as for sale by owner (FSBO).
Newspaper ads
Classified ads in local newspapers are another good source of home lists. "Open
houses" are announced in the real estate section, and you can do some initial
shopping and competitive pricing by spending weekend afternoons looking at houses
that are being displayed by real estate sales professionals.
Shopper's guides
Shopper's guides are available at newsstands, convenience stores, or supermarkets, and feature pictures and brief descriptions
of houses currently on the market.
Be aware, however, that due to publishing deadlines and printing latencies,
homes listed in a printed shopper's guide can be up to one month old, and may have
already sold by time you read the magazine.
Internet
Today, home listings are easily available on the Internet. Most websites have the advantage
of allowing you to specify the location, size, and price range of homes in which
you are interested. Some websites are updated every 24 hours.
A real estate professional
Perhaps the most efficient method of shopping for a house is to let someone with resources help you, and consult a real
estate professional. But how do you select a real estate professional, and what services can you expect?
Finding a real estate professional
If you know somebody who has recently bought a house, you can ask for a referral from them. You should try to find an experienced agent or broker who works primarily in the area where you are interested and who has access to a computerized Multiple Listing Service (MLS). This MLS is an automated system for generating a list of houses that match your requirements: an industry standard.
The relationship between a home buyer and a real estate professional is unusual, in that the buyer usually pays nothing for the agent's services. Instead, the agent is paid by the seller (usually a commission-based system, based on the sales price of the home). When a seller hires a real estate agent to sell their home, often this represents the seller's interest and commitment in the transaction.
Buyers Agent
It is also possible to find a real estate professional who will act
on behalf of the interests of the buyer, even though it is not their listing to sell. These agents are known as Buyer's Agents.
(In our shop, they're called HomeFinder Specialists).
They work on behalf of the buyer, on the buyer's side of the transaction. Normally, the Buyer's Agent is paid through a commission, often taking a percentage
of the listing agent's commission. So you don't have to pay for anything. But you should determine beforehand how your Buyer's Agent will be paid.
Will you be charged a commission if you buy a for sale by owner property?
How will the Buyer's Agent split the seller-paid commission with the seller's agent?
A real estate professional can provide you with a broad range of services, including the following:
A real estate professional knows how to present your offer to the seller, and negotiate with the seller on your behalf regarding the price and contingencies. An agent can also advise you about mortgage lenders, closing agents, home inspectors, and title companies.
Working successfully with a real estate professional
Interview the real estate professional before you start hunting for a home. This person will play a very important role in the purchase of your home, so it is vital that you understand what you can expect from them. A good real estate professional will take the time to answer your questions, and if they don't, you should think about choosing a different professional.
Once you have decided on one particular agent, it makes sense not to work with any others, as a real estate agent will work hardest for you if he or she knows that they are the only one with whom you are searching. There is no benefit to you to "see which agent finds you a house first." They are all working with the same MLS, and only their professional effort will make the difference. Finding you a house is the only way a real estate agent will get paid for all the work they are doing on your behalf.
Some agents will ask you to sign a limited-term Exclusive Agent Agreement to ensure that you do not switch real estate professionals part-way through the process. Read the agreement carefully to ensure that you are comfortable with the agreement before signing. If you do not have a signed agreement, and are unhappy with your agent, let them know you will no longer be needing their services before you begin working with another agent.
If you feel you are being "steered" to or away from particular neighborhoods, you should report your grievance to the U.S. Department of Housing and Urban Development (HUD), the agency in charge of enforcing the Fair Housing Act. The Fair Housing Act prohibits discrimination on the basis of race, religion, age, color, national origin, receipt of public assistance funds, sex, or marital status. You may also want to file a complaint with the local Board of REALTORS®.
Deciding What You Want |
What to Look For 
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