What will Buyer’s Representation cost me?
Perhaps the right question is, “What will it cost me if I don’t use a buyer’s agent?” Purchasing a home without representation is possibly the biggest financial mistake you can make. A buyer’s agent can guide you each step of the way to prevent costly errors. Failure to find out about defects in the property or the actual value of the property can certainly be an expensive mistake. Failure to negotiate a contract that works for you can cost you money as well as time. With a buyer’s agent, you can ask for and receive advice and assistance in selecting the best property and determining an offering price.

Who pay’s the Buyer’s Representation fees?
Surveys show in most instances buyer’s agents are paid like seller’s subagents; that is, buyer’s agents generally receive a share of the sales commission built into the list price. All listings in MLS will indicate how a commission will be paid.

Remember, the question you really need to ask yourself is: “Can I afford to buy a home without a buyer’s agent?” For most home buyers today, the answer is “NO”!

How can a Buyer’s Representation help me?
Buyer’s agents owe certain duties to their home buyers, such as care, confidentiality, full disclosure and accurate accounting. State laws define these responsibilities, the REALTORS Code of Ethics, general principles of agency and court decisions. That’s the legal definition. But what does a buyer’s agent actually do for the homebuyer? Like other agents, a buyer’s agent will show the buyer available homes, point out the property’s features, provide financing information and submit the offer to purchase.

Can a Seller’s agent or subagent help me?
Without a buyer’s agent, you’re really on your own. Keep in mind, the seller’s agent or subagent is actually working for the seller and is the seller’s legal representative. Yes, a seller’s agent or subagent can offer buyers some services, including a diligent search to find the right home, an explanation of available financing, calculation of monthly payments, estimation of settlement costs, and presentation of your offer to buy.

What a seller’s agent cannot do is disclose information not in the best interest of the seller, such as an opinion of the home’s real value or what price and terms the seller would accept. By law, the seller’s agent or subagent must negotiate on behalf of the seller and may not withhold from the seller information that could strengthen their bargaining position. That means you, as a buyer, should be careful not to disclose to the seller’s agent or subagent any financial or personal information that could be used against you.

Frequently Asked Questions We Are Asked at Coldwell Banker Advantage Realty
 
How does my agent get paid?
In most cases your Coldwell Banker Advantage Realty buyers agent will be paid by the listing company. Coldwell Banker Advantage Realty has an agreement with all the companies in the Multiple Listing Service as to how they will be compensated for selling their listings.
 
What if appraisal on my house comes in low?
If the home you wish to purchase will not appraise for the sales price, one of several things can happen. If you still wish to purchase the home, you can negotiate with the seller to sell it for the appraised value or you can go ahead and purchase the property at the agreed upon price but you will have to make up the difference in the appraised value and the sales price in cash at closing. The other option you have is to pull out of the transaction and have your earnest money returned to you.

What if the home needs repairs beyond the repair limit?
If the home you are buying is determined to need repairs in excess of the agreed upon repair limit there are several options. The seller can agree to do the repairs over and above the repair limit or you can decide to terminate the contract and not proceed with purchasing the home are among them.

What is earnest money?
Earnest money is money you place in escrow with the listing company. It is often called good faith money. It is money you put up to show the seller you are serious about purchasing their property. The amount of earnest money is negotiable and not required to have a binding contract. The amount is negotiated in the contract to purchase. The earnest money is credited back to the buyer at the closing.

What makes up my house payment?
Your total house payment is basically made up of 4 parts, together they are referred to as PITI. Principal: This is the amount you are actually paying down on the loan amount. Interest: This is the interest on the remaining balance of the principal. Taxes: This is 1/12th of the annual real estate taxes on the property, this money is placed in your escrow account. Insurance: This is 1/12th of your annual homeowners insurance premium, this is placed in your escrow account. All these things together make up your total payment. In some cases you may be required to pay mortgage insurance, if this is the case, then the mortgage insurance premium will be added to your payment.