Real Estate Buyers Beware: Get Representation... You Need Representation

>Cost Analysis
It is the buyer’s right to seek an agent,In order to prevent overpaying for a home, a
and it is in their best interest to do so.REALTOR will do a cost analysis for a buyer, to
For Sale by Ownerdetermine if the home is priced correctly. This is
When a potential buyer sees a For Sale bythe same kind of analysis an appraiser would do,
Owner property he or she should contact theirusing comparable sales which have closed in the
realtor before contacting the For Sale by Owner.last three months in the area.
And when the buyer makes an offer on the ForEscalation Clauses
Sale by Owner Property he or she needsEscalation clauses are applicable in markets where
representation on the sale. The buyer alwaysthere is very little inventory and it is a fast selling
needs representation for many reasons.market. The escalation clause will give you a
Home Inspectionscompetitive edge in procuring the home that you
Most buyers do not know to ask for homewant when multiple offers are presented on a
inspections, what they cost, or who to call to doproperty. An escalation clause is not a standard
one. If there is work to be done on an inspectionfeature on contractual sales.
report, a buyer should negotiate, and a REALTORHome Owners Association
has skill and experience at this.The buyer needs to know the time frame for the
New Home SitesHome Owners Association (HOA) packet. A buyer
New home site buyers need to hire a REALTORmay be caught in buying into an HOA with high
to look out for their interests, too. Remember,hidden fees if the timeframe is missed when he
the site agent is there to protect theor she can exercise their right to void the
builder’s interest and therefore everythingcontract. This will vary from state to state.
will be geared towards what benefits the builder,Disclosures & Disclaimers
not the buyer. When registering at a new homeIf there has been any structural damage to the
site, be sure to include your agent’s phonehome or adverse environmental problems with
number, name, and company.the home they must be disclosed. An example of
Dual Agency: The Listing Agencythis would be asbestos wrapped pipes. If not,
When a REALTOR chooses to represent thethen a disclaimer will accompany contract. Laws
seller AND the buyer, this is considered dualon disclosure/disclaimer vary from state to state.
agency. A buyer’s rights are notWell and Septic
emphasized in these circumstances. Bringing aIn rural areas, where well and septic are used
REALTOR onto the buyer’s side equalizesinstead of city water, they are applicable as
the sale, and gives the buyer much neededconditions of the contract. There are time frames
experience and professional advice.for these inspections also, which vary from state
Earnest Money Depositto state.
When the buyer makes an offer on a For Sale byTermite and Moisture
Owner — who makes the Earnest MoneyClean termite and moister letters vary from state
deposit? How does a buyer obtain the depositto state and from the timeframe that needs to
back if the contract falls through? A REALTORbe adhered to in the contract. The majority of
will place the money in an escrow account.lenders require a clean termite and moister letter
Buyer’s Broker Agreementprior to closing. The REALTOR in your area would
A buyer’s broker protects theknow these timelines.
buyer’s interest in the transaction. InReferrals
Virginia, the seller pays the commission, so by lawIf you are moving into an unfamiliar geographic
the listing agent and the selling agent have tolocation, ask your real estate agent if he or she
protect the seller’s interest. So, if youcan refer you to an agent in the area you are
select a buyer’s broker to work with youmoving to. A REALTOR obtained through referral
on the home purchase, you will be represented inwill help in relocating and purchasing your new
the sale.home.