“Buyers Pay the Real Estate Agent,” and 4 More Buyer Misconceptions to AVOID:
Don’t get caught not knowing:
1. –Sellers pay the real estate fees as a general rule, so as a buyer, don’t be afraid to utilize an agent because of concerns about paying commissions. –Adds to the already lucrative phrase, “Buyer’s market” doesn’t it?
2. “I’ll just use the agent that’s on the sign…” –That’s fine, but wouldn’t you rather be represented by someone who is representing just you when you are buying something as large an investment as a house? Dollars to doughnuts you know someone, know someone who knows someone, or are even related to someone who could be your agent, and not necessarily a total stranger who is also representing the seller.
3. “I don’t have to worry about talking to a mortgage-loan person right now.” Have you been sleeping the last few months? Heard of the “mortgage meltdown?” Preparation has to include collaboration with her/him on what your exact requirements are to get the loan when you find what you’re looking for. The requirements seem to change weekly, so it’s critical to find someone sharp; if you don’t know a mortgage person, make it someone your real estate broker considers an expert in mortgage finance. You also need to query this person with every question you can come up with so that you can plan ahead financially. If you are selling a house in order to buy one, now is a great time to figure out whether or not there was a prepayment penalty on your old mortgage loan, and ask the same question about your future mortgage loan. Get prepared, and you won’t miss out on some of the best deals in home-buying seen for generations.
4. “No need to worry about resale.” NOT. The average buyer stays in their home for 4 years. –Just 4 years! True, you shouldn’t “worry,” but you should concern yourself with resale around every corner, during every showing–or better yet, choose an astute broker, and let her be concerned about the resale value of the house you’re becoming enamored with, before and during your purchase.
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