There are ten items on this list… but the solution to almost all of them is to form a relationship with a REALTOR that is YOUR REALTOR to explain the process and guide you through all ten of these steps and keep you from getting into trouble.
1. Buyers don’t clearly understand the roles and duties of real estate licensees, especially who represents whom in purchase transactions, and may wrongly misinterpret or rely on a licensee’s actions as representing the buyer’s interest alone. A buyer needs to contract for services if they want representation.
2. Buyers may innocently disclose confidential and material information about their buying needs, financial abilities and negotiating strategies to sellers and their agents, especially when not aware of the roles of the licensees involved in a transaction. This is exactly why representation is important.
3. Buyers think that sellers pay closing costs and seller concessions. This can be arranged, but it is not normal procedure. Your Realtor can explain how to arrange to have closing costs paid by the seller.
4. Buyers think mortgage companies and appraisers protect and promote the best interests of the buyer. It is important to get a mortgage person you can trust, referred to you by your Realtor and with a history of strong customer service.
5. Buyers fail to understand how critical it can be to carefully design contracting strategies and techniques in order to better negotiate with sellers and their agents.
6. Buyers don’t appreciate the benefits they gain when they are entitled to receive the undivided loyalty and trust of the agent, and are usually uninformed about the service and loyalty limitations inherent with an intermediary, appointed licensee, dual agent or other limited service providers.
7. Buyers minimize the effect of competing buyers when preparing or negotiating purchase offers.
8. Buyers are usually unaware of the importance of personally attending and conducting thorough and independent physical property inspections, environmental audits and separate property appraisals as a condition of the home purchase.
9. Buyers do not comprehend the important value relationship between real estate services offered or provided and compensation obligations.
10. Buyers fail to recognize the long term value benefits of preserving and/or enhancing the buyer’s equity position.