carissa1643
I LOVE my sons! :)
Member since 5/09 5283 total posts
Name:
Carissa
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Some questions about house hunting
We're going to be looking for houses very soon (hopefully), we know which agent and realtor we're going to use. We did not sign a contract with him yet because we're not quite ready yet. If we go to open houses without him and we didnt sign with him yet, do you think its a good idea, or do we need to involve a buyers agent or can we do this by ourselves? This is the first time DH and I will be buying a home so we don't really know much and I probably just answered my own question about that.
And also, when we look at houses, is it better to let the owners/selling agent know that we're interested or do we need our poker faces on and seem indifferent? I'm not sure if its like buying a car and you cant act as excited as you are 
And about being "in contract," how strict is that? Is there any way a buyer/seller can back out after we've both signed? That's my biggest fear but I'm sure that happens more on the buyers end than the sellers, right? I'm just so intimated by the entire process. I've heard so many crazy stories and I hope everything goes as smooth as possible!
I'm sure I'll ask the rest of my questions as soon as I send this but thats all I can remember right now. TIA!
Message edited 4/26/2011 5:22:48 PM.
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Re: Some questions about house hunting
If you work with an agent, you can have him work with you as a buyer's agent, or as a broker's agent.
If you sign on with him as a buyer's agent, you sign a contract that you will work exclusively with him, and he is entitled to a commission if you buy. As a buyer's agent, the agent represents YOUR interests as a buyer (he negotiates to get you the best deal, he points out potential issues/flaws with the house, etc.) and owes all of his duties (of confidentiality, of loyalty, etc.) to YOU.
If you decide you don't want to sign a contract and hire an agent to be your buyer's representative, then you can still work with one agent consistently, but he will be a broker's agent, meaning he is really working for the listing agent (and therefore, representing the SELLER's interests). His ethical duty is to get the most money for the seller, and he owes all of his duties to the seller. A broker's agent will work with you, research and send you listings, show you properties, and guide you through the buying process, but he's not representing you. So in this case, you want to play your cards closer to the vest in terms of how much you are willing to pay for a property and such. A broker's agent is more of an intermediary, not an advocate for you. Unless you are not sure that you want to work exclusively with the agent you've selected, I agree that you should really consider hiring a buyer's agent. I did when I bought my home (before I was in real estate) -- and I am an attorney and my husband works in banking, so we were savvy buyers. But I wanted representation in the process.
You should absolutely disclose that you are working with an agent when you go to open houses. If possible, bring your agents' cards with you to give to the agent working the open house. Even if you don't sign a buyer's rep agreement, if you want that agent to be able to present your offer and be involved in the sale, you should let the agent at the open house know that at the outset. It saves a lot of confusion and hard feelings.
When you are viewing a house -- it doesn't hurt to make nice small talk or even compliment the sellers on their home, if they are there. Most sellers would rather sell to people they like and who they believe appreciate their home. But that being said, you don't want to lay all of your cards on the table, and you definitely don't want to disclose anything about your finances.
As far as the contracts go - - there are always contingencies in the contract that allow either side to break the deal. For example, if you as the buyer cannot get financing, then you can get out of the contract. However, a contract should not be taken lightly. Once both parties sign, you are committed to the deal, as is the seller (e.g., the seller cannot just go take a higher offer, once the contract is signed). And you can't just "change your mind" as the buyer, once the contracts are signed. You will have a real estate attorney (you should think about who you want to use now, before you start seriously looking) that can explain the contract to you before you sign. But absent certain circumstances arising (that are explicitly spelled out in the contract) you ARE bound by the contract and committed to buying the house, once you sign.
Hope this helps!
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Re: Some questions about house hunting
Not willing to accept ALL offers, but "motivated sellers" is usually code for "needs/wants to sell quickly" and "wants to hear offers." Sometimes listings will also say "S.A.R.O.," which stands for "submit all reasonable offers.
I know that some sellers I've worked with have said that they don't want to lower their asking price, but they do want me to convey to other agents and buyers that they want to hear offers. So "motivated seller" is a way to convey that message.
Good luck! House hunting is exciting and can be fun. If you have chosen a good agent that you feel comfortable with, he should be able to help you through the process and answer all questions that come up as you go along. So no need to stress! 
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