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Frequently Asked Questions
| Q: What is a buyer's broker? |
A: A great ally, if you do your research and pick
the right broker! A buyer's broker works for you. It's their responsibility to
protect your interests and negotiate the best possible price for you. These agents can
save you thousands of dollars as well as try to insure you purchase wisely for future
resale.
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| Q: Who pays the agent's commission? |
A: This is one of the first questions I'm asked by
many buyers. The seller or builder pays the commission. Your cost for the broker is
nothing! Unless, of course, they do such a great job you want to buy them lunch!
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| Q: Why use a buyer's broker for new construction? |
A: Rarely will the builder reduce their price by
the commission! REALTORs comprise the majority of their sales. The builders don't want to
have a reputation for cutting out the broker. A good broker can direct you to
neighborhoods & builders with the best opportunity for appreciation and protection of
equity. Many buyers get in trouble with the upgrades. It's important you build within
the range of the neighborhood & not ever improve a property.
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| Q: How do you choose a good buyer's broker? |
A: Take the time to interview the agent. It
amazes me how few people ask about my qualifications and experience. This is probably the
largest single purchase you will make to date. Some questions to ask are as follows:
- Have you continued on with your education and achieved a Broker's license or do
you have only a salesperson's license?
- Do you possess an ABR (Accredited Buyers Broker) designation?
- Have you achieved the CRS (Certified Residential Specialist) designation?
- How many years have you been selling real estate?
- Do you work only as a buyers broker or do you take properties to sell also? Above all, make
sure your personalities work well together.
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| Q: Should I sign an exclusive buyer's broker agreement? |
A: This is a tough question. If you sign an
exclusive buyer's broker contract, you're contractually bound to that agent! This gives
the agent an opportunity to work less than diligently. If you're contractually bound to
them, they are insured a commission even if they do minimal work! I personally have never
asked for a contract until we find a home the buyer wants to buy, then I make the
agreement exclusive for that house. I want my buyers with me because they like and
respect me, not because they are legally bound to work with me!
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Next: Mortgage Process & Closing Cost
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