Many prospective home buyers are eager to find and buy their 1st home. Many are in a hurry and want to get out of the apartment life or living with their parents. They may have many different reasons, but their eagerness may outpace their education and learning about the process of purchasing their 1st home. 1st time home buyers can be offered many avenues to view or tour homes. There are many 3rd party websites where buyers can see all the newest listings and even schedule a showing with an agent they are introduced to online.
Due to the recent NAR settlement buyers will need to sign-up with an agent before can actually show them a property. There may be different forms (Pre-Agency, Buyer Agency, Single-Tour Agreement etc...) to set-up agency. We will cover these agreements in a later blogpost. We want to explain why it is important to sign-on with an agent.
Reason #1
Buyer agents will be able to provide a buyer education meeting to cover the purchasing process, the important details of the process and give their buyers the knowledge they will need to make very important decisions during the process.
Reason #2
Buyer agents will be able to connect prospective buyers with local lenders. First, mortgage lenders can provide a Pre-Approval Letter after a credit review for buyers to shop for homes. Second, mortgage lenders can then provide an underwritten loan for buyers to purchase a home.
Reason #3
Buyers should use a buyer agent so that there will not be a conflict of interest. If a listing agent is used to write an offer on behalf of an unrepresented buyer on the very same home the listing agent has listed, their is a conflict of interest. The listing agent has loyalty to the home sellers and not to the unrepresented buyer.
Reason #4
Buyer agents, if experienced can provide ancillary or allied resources to the buyers who may be in need of contractors, surveyors, home inspectors etc. These referrals can be critical during and after the purchasing process.
In summary, buyers and more so 1st time home buyers can engage and work with extremely qualified buyer agents for many reasons. Buyer agents can educate, protect, provide loyalty and fiduciary responsibility during the home buying process. "Buyer Beware" is an old saying that has relevance to many current situations. Using a buyer agent should be a non-negotiable when buyers decide to purchase their 1st home, 2nd home or any property.
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