Question about purchasing our first home..

Posted by Century 21 Dallow - Christine Braun

As a buyer, especially a first-time buyer, it's really to your benefit to have an agent who is dedicated to working with you, knows your wants/needs, and can help you navigate an increasingly competitive market. If you have a buyer's agent representing you, you have someone to help you figure out the pros/cons of any house you see, the value of the home you decide you want to make an offer on (and an offer strategy), and then you have an advocate on your side to guide you through the rest of the process (the home inspection, contracts, mortgage process, etc.). When I work as a buyer's agent, I consider myself the "project manager" for the entire transaction for my buyer. Going to each listing agent for every house can be a logistical nightmare for a buyer AND that listing agent is representing the seller's best interest, not yours. Her only job is to get the best deal for her seller. NY state is very "buyer beware" in terms of real estate laws (required disclosures and that type of thing). So you really want representation.

[I used a buyer's agent when I bought my home, before I was in real estate, and I was a savvy buyer and an attorney, but I still felt I needed a buyer's agent.]

I think a good first step for you would be to set up a consultation with an agent. I typically like to sit down with a potential client for about 45 minutes to an hour to discuss (i) what the buyer's goals, needs, and situation is in terms of what they want in a house, where they want to look, when they want to buy, (ii) tell the buyer a bit about me and how I work, and (iii) go over the entire process from soup to nuts, which would address many of the questions you are raising, including financing/preapprovals, how agents get paid, whether you can go to an open house, etc.

If you would be interested in setting up a consultation with me, we could do that -- no pressure or obligation, just a chance for you to get information. I have worked with many buyers on this site and if you search my name on here, you will find reviews. In the business directory, under "Real Estate" you will find my bio. You can also go to my Facebook Page - "Christine Braun Real Estate" for more information and client testimonials. I'm a full-time agentI am based in N. Bellmore, but I work all over Nassau and Suffolk. My direct contact info is [email protected] or (516) 587-7618.

As far as questions raised - Yes, a buyer's agent is normally paid out of the seller's sales proceeds (not out of pocket for the buyer).

Re: the preapproval - That is a MUST before you seriously start looking at homes. You need to know what you can afford, and also what type of loan you are going to get, how much you will put down, whether you will finance your closing costs or pay cash for them... and you need to understand all of the pros/cons associated with your options. A good loan officer will guide you through this. (When you make an offer, it's not just about the number, but ALL terms -- down payment, loan type, etc.)

I don't understand where the loan officer is coming from at Continental, saying wait until you find a property. First of all, a good real estate agent will respect your budget. So if you are approved for $500K but only want to spend low $400Ks, they will help you achieve that. I encounter this all the time. Or, if you are really concerned, you can tell the loan officer that even though you are approved for x amount, please generate the letter for a lower amount that reflects your budget. No biggie. Furthermore, if you wait to find "the house" you want to make an offer on and then start the preapproval process, you will likely lose out. Many houses are now drawing multiple offers and getting offers day one on the market. So if you see a house on a Saturday, and can't get a hold of your loan officer until Monday, the house may be gone by then. Getting the financing piece squared away is the most important thing to do, for your own knowledge, and for being offer-ready!

Re: open houses. Yes, anyone can go in, and it's certainly a good way to get a feel for homes in your desired price point and location when you are in the casual looking stage. BUT - if you have a buyer's agent, and go to an open house without them, you should tell the agent at the open house that you are working with someone (I give my clients a stack of my business cards that they can give out.) Sometimes, if I know my buyer client is attending an open house without me, I call the other agent as a courtesy to let them know. The thing is - a buyer has the right to have anyone they want make an offer on their behalf. They are not legally stuck using the listing agent just because they went to the open house. BUT if you don't disclose you have an agent, the listing agent will assume you don't and will go through them. And yes, they often will "get mad" that they showed the house to a buyer who never mentioned they had an agent, and now is bringing one in after the fact. While you can still then use your agent to make an offer, as a practical matter, it really doesn't help the buyer in negotiations to have pissed off the listing agent, lol. So better to be upfront!

Hope this helps! Feel free to contact me anytime with other questions, or maybe schedule a face-to-face meeting!