Seven Tips Every Buyer Needs to Know Before You Buy in Stowe
- You have the right to representation: Typically an agent will represent the Seller. But you do have the right to have an agent represent you. The most important thing is to feel that you have a good working relationship with your agent. If you feel that your agent is more interested in the sale then your wants and needs, it is time to find a new one. Sometimes you will start out with agent representation and find that you like a listing that is in that agent’s office.
In Vermont you can not have buyer’s representation by your broker if the listing is in the office of that broker. You have to decide if you want to continue with that agent or request a new one. Your agent can refer you to someone else outside of their agency or she can recommend a lawyer that can help you through the process. Any agent is obligated to tell you everything that they know about the property whether they represent you or the Seller.
However, if they represent the Seller they cannot tell you what to offer, nor can they negotiate on your behalf. They can however give you comparable sales in the neighborhood to educate you. If you want to stay with the agent that you trust, it is possible to do so. You are able to get the information to make an informed offer through public information provided to you by the Realtor. Your Realtor can still write up the contract and after you have come to an agreement she can continue to give you the same excellent service you have come to rely on. The important thing is that you have to feel comfortable with the situation. - Know the market: Before you begin looking for a property get to know what the market is like. There are many ways that you are able to find out what ratio houses and land are selling for. The web is an excellent way to do research. You can find town assessments through Zillo.com,Realtor.com or by going to your state website and searching the property transfers. Your Realtor can be an invaluable source because most Realtors will have this information at their fingertips. It is public information, so it is readily available.
- Pick an agent: Make sure that the agent you pick is a Realtor because that agent is bound by a code of ethics. Do not just go to the agency that has the most signs; get a recommendation from a friend or a family member. Ask around, you will quickly find who enjoyed their experience. Interview that agent and make sure that they are listening to you, not busy telling you about them. Remember, this will be your biggest purchase ever so make sure that you are comfortable and have confidence in the Realtor that you pick. Go to their website before you interview them and get to know them. You can tell a lot about their personalities by their websites.
- Get Pre-Approved: Your Realtor can recommend a mortgage broker that will pre-qualify you to make sure that you are eligible for a mortgage. Once you know exactly how much money you can spend on a house get the mortgage broker to pre-qualify you. What is the difference? Pre-approved means that the mortgage broker has looked at your credit scores to determine exactly how much you can borrow.
Pre-qualification means that you have filled out an application and actually gone through the process of getting a commitment from a mortgage company to lend you a specific amount of money. If your circumstances have not changed by the time you bid on a house that pre-approval will be invaluable. It will tell the Seller that they can be reasonable assured that you will meet the financing contingency in the contract. It will also make the loan process faster and you will be able to be in the home of your dreams quicker. If you are in a bidding situation against another buyer, you might be in the driver’s seat with a pre-approval. - Know what you want: Make a list of all the aspects you would like in a new home or if you want to purchase land, the aspects of the topography, view, permits etc. Pay attention to the amount you have to spend and then be reasonable about what you can get for those dollars. Don’t look at property that is way over you budget because sellers will not sell that far below their asking price.
- Look at enough properties that you know what you can get: It is good to have looked at several properties so that you can get a comparison of what is available in your price range. You will be able to make a better educated decision and you will know when you have found the property just for you.
- Ask for documentation: When you are ready to make the offer rely on your Realtor to help you through the process. If she does not provide documentation for you, you should be asking for a Seller’s Disclosure, permits ( both local and state), know the zoning regulations, the utility costs, the taxes, surveys, etc, Get a building inspection, radon test, water test for both organic and inorganic.
Hire a lawyer to make sure that the title is clear, and you have received all the necessary documentation from the Seller. Get all the closing costs from your mortgage broker so that there will be no surprises in the end. Your Realtor should be advising you every step of the way and doing much of this work for you. If she is not you need a new Realtor.
If you follow these seven simple guidelines the process of purchasing a home, whether this is your first home or a vacation home, should be less stressful. If you have not done your homework before you begin the process you may find buying a home more work than you had anticipated. Many times a buyer is so anxious to look at property they will not be prepared. Of course, there is always the exception. You might be on vacation and fall in love with the area and decide to look at property. If you have a good Realtor working with you she can guide you through the process easily.
Did you know that 85% of home buyers still use a Realtor to purchase property? They may have used the internet for their first contact but buyers are still finding it more comfortable and to their advantage to use the professional knowledge of a Realtor. Research by the NATIONAL ASSOCIATION OF REALTORS® has shown that when an agent is used, the prospective buyer found their home one week faster and examined three more properties than those consumers who did not use an agent.
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Here’s to Happy Hours of Shopping for Your Dream.