Buyer's
Agent Smoothes Sometimes Bumpy Road to Foreclosure Purchase
By Rick Sharga, Vice President of Marketing for
RealtyTrac
Whether it's the first time or the tenth,
buying a home can be both an exhilarating and overwhelming experience. As
with any major purchase, there's a significant amount of pressure to make
the right decisions about such matters as where and what to buy, and
ultimately how much to spend. How can you make sure you get the best deal
possible on a property that suits your needs, or find exactly the right
property to fit your budget and your lifestyle? Increasingly, many
homebuyers are doing this by securing the representation of a Buyer's Agent.
Most people hire a real estate agent to
sell their home, but overlook the importance of having an agent when
buying a property, especially when dealing with the intricacies of
foreclosure auctions. While in some cases it's possible to negotiate
your purchase through the seller's representative, make no mistake:
these seller's representatives are charged with making the sale and
negotiating the best deal for their clients — the sellers! With that in
mind, it's best to secure your own representation as a buyer, in order
to minimize potential conflicts, and make sure your interests are
represented.
In the more complex foreclosures market, a
Buyer's Agent can be even more valuable. The agent can help you
negotiate with the owner before a property comes on the market and can
also act as a buffer during the negotiating process to make sure you've
completed all the necessary steps before closing. Done right, it's like
having your own personal tour guide to help you find your way through
the foreclosure buying process.
For buyers looking to uncover substantial
bargains in real estate, the foreclosures market does offer a treasure
trove of opportunities.
Foreclosure properties are some of the best opportunities in real
estate today with savings of 10-30 percent below market value. Some
properties offer savings of up to 50 percent or more! But like any
investment offering a high return, there are sometimes higher risks
involved in buying a foreclosure than in buying more traditional real
estate. One of the ways to maximize the value while minimizing the risk
is to work with Buyers Agents who specialize in this market, with
specific experience navigating the twists and turns that come with
purchasing a foreclosure.
"If you're in the market for a foreclosure
property, you should really take some time to look for an agent with
actual foreclosure transaction experience," explains James J. Saccacio,
chief executive officer at
RealtyTrac, the leading online foreclosure marketplace. "The nuances
of this market make it a different animal from conventional real estate,
so buyers owe it to themselves to secure a seasoned agent who's familiar
with the foreclosures process, and has knowledge of local, regional and
state laws."
RealtyTrac's National Agent Network
connects prospective buyers of foreclosure properties with local agents
who specialize in foreclosures. Homebuyers can go to
www.realtytrac.com to identify and research potential home purchases,
as well as to find all the tools and professional resources they need to
help them close the deal.
Of course, it's also important to consider
the agent's knowledge of the area where you wish to purchase property,
their ability to close a deal, and their access to other professionals
such as attorneys, lenders, and title companies. It's often a good idea
to interview two or three agents to ask about their credentials and to
test out chemistry, just as you would when selecting any valued business
partner. Ask for references from previous buyers to see what people who
have been in your shoes have to say about the agent's credentials and
demeanor. Ultimately, your agent should make you feel confident that
they know how to steer you correctly through the foreclosure buying
process.
Here are some questions to ask a
prospective buyer's agent if you're buying a foreclosure:
- Are you a licensed, full-time an agent?
- Are most of your clientele buyers or
sellers?
- How long have you worked with
foreclosure real estate?
- How many clients are you working with
presently?
- Do you have former clients I can contact
as references?
- How will you help me contact owners in
default?
- Are you familiar with the foreclosure
laws in this area?
- How much commission will I pay as a
buyer?
Once you've selected an agent, you'll need
to set up some ground rules for how you want to work together, such as
times you are available to view homes, expectations regarding the agent
previewing properties on your behalf, and courtesies expected by both
parties.
Keep in mind that even the most intuitive
agents are not mind readers. You need to make your preferences,
priorities and spending limits clear up front, so neither party wastes
valuable time looking at properties that don't meet your needs.
Finally a word about etiquette: While you
don't necessarily have to commit to working exclusively with a single
agent (unless you've signed an exclusive agreement with them), it's most
proper to ultimately extend your loyalty to an agent who spends a
significant amount of effort helping you find a property. Remember, real
estate agents work on commission, so the time they spend working on your
behalf amounts to nothing if you don't ultimately make a purchase
through them. If for some reason, you find that your needs are not being
met by a particular agent, it's best to set the record straight early in
the process, either to correct the problem or to retain alternate
representation.
Working with a Buyers Agent can often
result in a net savings on property purchases—whether traditional resale
homes or foreclosure properties, and can also help inexperienced home
buyers from making costly mistakes in negotiations, contract terms and
property research.
|
Land
Acreage & Lots for Sale
