Be a Good Homebuyer 101
By Julie Sullivan
In today's housing market, where buyers are scrambling for
space, and sellers are entertaining multiple offers--all above
the asking price--it pays to be a good homebuyer. Real estate
agents are typically juggling a dozen clients at once, and
what makes them happiest (besides a vacation) is clients willing
to help themselves. Want to be an agent's dream client who
earns the extra effort in an insanely competitive market?
According to leading real estate agents, the following phrases
quickly trigger a clenched jaw and should be avoided in the
interest of securing their help in finding your dream home.
"I want you to find me a house."
The key to the buyer/agent relationship is that the agent
isn't finding you a house. The agent's role is to negotiate
the sale. While agents are happy to attend open houses with
customers, they can't possibly look at every available home.
Searching, therefore, becomes the buyer's job. Buyers must
be willing to shop around and exert themselves or they risk
alienating the person they need to close the deal. Kathrina
Verzosa of LaSalle Properties in the San Francisco Bay Area
had clients who refused to put any effort into their search.
"Clients need to be proactive," she says. "They can't expect
their agent to do all the legwork."
"We want a place with two bedrooms and a nice kitchen."
Before sitting down with an agent, it's important to know
what you are looking for in detail, and that means more than
just how many bedrooms. Do you need a lot of light for your
houseplants? Would you prefer an attached two-car garage so
you won't get wet bringing in the groceries on a rainy day?
How important is location? Verzosa likes to hand couples separate
pieces of paper and have them list what they're looking for
in a new home so they can see how their responses differ.
Clearly, no house can have everything, so buyers need to identify
their specific requirements before meeting with their
agent (and then be prepared to be flexible--see "Extra Credit"
section below).
"You are the only agent we've spoken with."
While it may seem flattering to tell an agent that he or she
is the only agent with whom you've chosen to work, no professional
is going to be insulted if you choose to shop around. In fact,
many agents will encourage you to meet a few agents and find
one that suits your style. This means asking friends for recommendations
and interviewing possible candidates. "Try to have some things
in common. That makes the journey much easier," says Elliott
Jenkins of TRI Coldwell Banker in San Francisco. Most important:
find someone you respect and with whom you can build a rapport.
"This isn't worth what it costs."
"It may not be worth it to you, but it is to someone else,"
says Verzosa. "Value is subjective." While it is true that
you may be able to get a nicer rental apartment for $2000
a month than the fixer-upper that will cost the same per month
in mortgage, the difference is that you'll own the property.
Many agents predict that the already booming housing market
will continue to boom, and that the prices being paid for
homes today will seem very reasonable over the next five years.
Financials, however, are frequently what prompts first-time
house hunters to opt for renting.
"Let's drop all contingencies."
Sweetening an offer by dropping contingencies isn't a new
tact in the real estate game, but it makes agents leery. Not
covering yourself for a problem that might erupt during an
inspection, for a loan that falls through when the lending
bank appraisal is lower than the offer price, or for failing
to sell your current home could land you in serious financial
jeopardy. While a number of winning bids are submitted contingency-free,
the consequences of paying liquidation damages in case of
a default may not be worth the risk.
"What's escrow?"
Most agents know that instructing clients on the buying process
is part of their job, but it doesn't hurt for clients to learn
the basics on their own. Many local credit and real estate
organizations offer homebuyer education classes, and some
agents offer workshops both privately and within their agency.
There are also many books on the subject--such as Homebuying
for Dummies--that outline the process and introduce readers
to professional realtor jargon.
EXTRA CREDIT: The following are phrases that will
earn you bonus points with any agent:
"We've already been preapproved for a loan."
Prequalifying is nice, but preapproval is better. Although
no loan is guaranteed until the money is in your hands, agents
like to see that their clients have taken the financial initiative
and have a clear idea of what they have to spend.
"I have a question about" or "I'm a little afraid of this
process."
For many people, buying a home will be the most expensive
purchase in their lifetime, a process that often requires
professional guidance. "There's nothing wrong with that,"
says Jenkins, who has been advising beginning house hunters
for 28 years. Most agents respect clients who are willing
to discuss their concerns. Not only does this show trust in
the agent, but it also opens the lines of communication, allowing
the agent to respond to--and hopefully resolve--your issues.
"We're flexible."
Perhaps the most appealing and necessary trait in a good homebuyer
is the ability to roll with the punches. Clients may be forced
to give up their ideal in favor of something more realistic.
They may also bid on several homes before having an offer
accepted. It's critical that buyers don't respond to a necessary
change or a rejected bid as a personal blow. While some agents
say that it's the "optimistic fool" who wins the house in
a multiple bid situation, Verzosa has a different message
for her outbidded clients: "All you did was miss out on the
opportunity to pay more for a property than you thought it
was worth."
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