What Does a Buyer's Agent do?
Last week I reviewed what a seller's agent should do for you. Now let's review the flip side of that coin: a buyer's agent. This legwork is a lot different than a seller's agent and not on just the premise that you are clearly buying a home, not selling one.
A buyer's agent will ask the harder questions. Especially involving your finances. What may feel like an intrusion into a taboo topic is really a game changer for YOU. Think of it this way, if you're not pre-aproved or approved for a home and you sign a contract, you can still be legally obligated to either complete the purchase (whether you have the money or not) or forfeit your earnest money. Or worse, it goes to court because the seller is angry.
The basic financial questions don't seem so bad, now do they?
We are not financial advisers. We are not looking to tell you how to manage your money or where to invest it. We are also not going to judge you on how you've been spending your money. BUT a home purchase is a huge financial long term investment. One of the largest most people will make in their lifetime and the financial questions are a serious inquiry for a serious investment.
(The large down payment for homes is a myth! The FHA loan only has a 3.5% down-payment and a VA loan is little to no down-payment. Check out my blog post going over possible grants to even cover the 3.5%.)
Once you are approved for a mortgage, the real fun begins! A good buyer's agent will be able to over look cosmetic imperfections and be able to focus on what's important in a home: floor plan, structural stability, location, and value of home relative to market.
Once a home is picked, it is the buyer's agent's responsibilities to submit an offer, obtain disclosures, and making sure inspections and repairs are done in a timely manner. They also will coordinate the activities of your lender, attorney, title agent and other professionals playing a role in your purchase.
All of this is, of course, at no extra expense to you. A buyer's agent is paid (under most circumstances) by the seller of the home. Keep that in mind when you sell your future home to get a new one that the total commission charge is being split among multiple people involved in the transaction.
Odds are really good you can probably afford a home today so go forth and pick a great "coach." (Curious about qualities of a good "coach" check out my short video!)
A buyer's agent will ask the harder questions. Especially involving your finances. What may feel like an intrusion into a taboo topic is really a game changer for YOU. Think of it this way, if you're not pre-aproved or approved for a home and you sign a contract, you can still be legally obligated to either complete the purchase (whether you have the money or not) or forfeit your earnest money. Or worse, it goes to court because the seller is angry.
The basic financial questions don't seem so bad, now do they?
We are not financial advisers. We are not looking to tell you how to manage your money or where to invest it. We are also not going to judge you on how you've been spending your money. BUT a home purchase is a huge financial long term investment. One of the largest most people will make in their lifetime and the financial questions are a serious inquiry for a serious investment.
(The large down payment for homes is a myth! The FHA loan only has a 3.5% down-payment and a VA loan is little to no down-payment. Check out my blog post going over possible grants to even cover the 3.5%.)
Once you are approved for a mortgage, the real fun begins! A good buyer's agent will be able to over look cosmetic imperfections and be able to focus on what's important in a home: floor plan, structural stability, location, and value of home relative to market.
Once a home is picked, it is the buyer's agent's responsibilities to submit an offer, obtain disclosures, and making sure inspections and repairs are done in a timely manner. They also will coordinate the activities of your lender, attorney, title agent and other professionals playing a role in your purchase.
All of this is, of course, at no extra expense to you. A buyer's agent is paid (under most circumstances) by the seller of the home. Keep that in mind when you sell your future home to get a new one that the total commission charge is being split among multiple people involved in the transaction.
Odds are really good you can probably afford a home today so go forth and pick a great "coach." (Curious about qualities of a good "coach" check out my short video!)
Happy Hunting,
Kurstin Raposa, a Realtor specializing in assisting buyers and sellers throughout St. Louis, Missouri and the surrounding area including, but not limited to, Jefferson County, South County, St. Charles County, and St. Louis County with Exit Elite Realty. Nothing beats a real estate agent with thorough knowledge of a local market that loves to share it with anyone that'll ask. If you have any questions please call or text: Kurstin Raposa 314.596.8608
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