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Congratulations! You have decided to purchase a home, or are thinking about buying one. You'll be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future, and creating an environment for your family. When you own your own home, your hard-earned dollars contribute to your mortgage. The equity you earn is yours. Over time, your home will increase in value.
This is where buyer representation comes in. In a real estate transaction, shouldn't you, the buyer, have someone that is required to provide you with loyal and faithful service? Shouldn't you have as much information as possible to help you make the decision to purchase? Obviously, the answer is "Yes".
Real estate agents that are representing a seller of a home are required by law to be faithful and loyal to the seller. They are required to advise and inform the seller of any information that may be useful to the seller. However, they are not required to provide you with loyal service. A very accurate analogy would be to say that the agent-seller relationship is like that of a lawyer-client relationship. If you are a buyer, you need someone who is looking out for your best interests.
Let's look at just one scenario where not having a buyers representative could be detrimental in a real estate transaction.
A seller decides to see if he can sell his house for $500,000. However, all the comparable houses in the neighborhood sell for around $450,000. You see the house, call the agent, schedule a showing, and decide you want to make an offer. You tell the agent that you would like to put in an offer for $475,000, but that you are willing to go to $490,000 if you had to in order to get the house. The agent will submit your offer to the seller, and tell him that you said you would go to $490,000. Obviously the seller would counter your offer with, you guessed it, $490,000. The agent was not required to tell you that the house was $50,000 above comparable houses. The agent was not allowed to tell you that the seller told him that the first offer above $450,000 would be accepted. The agent was required to tell the seller that you would go to $490,000. In this case you just "lost" $40,000 by not having your own representation.
Are you ready for the best news of all? In a vast majority of cases, buyers representation does not cost you one penny! Real estate agents make their income from commissions paid buy the seller. The seller pays a percentage of the final price. If there is no buyers agent, the sellers agent keeps all of that percentage. If there is a buyer agent, that percentage is split between the two agents. The seller actually pays for your representation!
In the following reports, you'll find the information you need to make a wise buying decision. I'll take you through the planning process step-by-step , to help you determine which home is right for you. You'll find a host of informative articles on mortgages, viewing homes, the offer, closing details and moving.
Please contact me if you have any questions about buying a home in Hawaii. |