What First Time Homebuyers Need To Know About Seller’s Agents
It is essential to understand the steps in home buying especially if this is the first time that you will purchase a new house. Buying a home usually involves working with a subagent otherwise known as the seller’s agent or seller broker. These agents are the ones who act as the seller’s representatives whenever closing a deal. As such, they are entitled to a commission in addition to rights and responsibilities towards the buyer. Regulations vary from state to state, but there are certain things they cannot do according to national law. The author of ‘100 Questions Every Home Buyer Should Ask’ encourages all buyers to review the agent’s forms and disclosures thoroughly to understand exactly what types of services they will be offering; if you do not understand anything, do not sign the form. It’s also important to understand the key things that a seller’s agent can and cannot do for you:
The seller’s agent cannot disclose the list of comparable home’s prices in the area. Often referred to as ‘comps’, a compilation of similar homes in the area will be given to you. Comps usually consist of listing information and list prices. This is necessary to ensure that an unreasonable price is avoided once negotiation takes place.
When you are still deciding, the seller’s agent cannot give you hints on what home to choose. The seller’s agent has the primary task of selling the home that is commissioned him to deal. However, he cannot insist or even suggest what home you should purchase. In the case that you like two properties and it happened that the subagent works for both sellers – you cannot be persuaded to select one over the other. In other words, only you have the power to decide.
The seller’s agent cannot say anything about the home’s deficiencies. Whatever your decision is, the seller broker cannot influence it. This is the main reason why any defects in the property cannot be discussed to you. Nevertheless, you can do your own research to see if you are buying the one that is in good condition.
The seller’s agent is not allowed to disclose information and offer suggestions regarding the property’s best offer. In most cases, the buyer is tempted to inquire on the amount that must be prepared for the home purchase. However, your seller’s agent cannot disclose said information at the time you were communicating. The seller agent has to follow certain conventions particularly as this may affect his relationship with the seller.
The seller’s agent can ask list of referrals from you. Seller brokers have the right to request for referrals from you, and that includes your acquaintances, friends, and family members. Many of these seller brokers are independent business owners and it would be an act of goodwill to help them find new clients.
When you are working with a seller’s agent as a first time home buyer, it’s important to remember that they are in the business to make the home buying process as easy as possible. This doesn’t always mean that they have your best interests in mind, so it’s important to do your own research about the property and work with a professional real estate agent in addition to the seller’s agent.
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