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Why should I use a real estate agent?

A real estate agent is more than just a "sales person."  They act on your behalf as your agent, providing you with advice and guidance and doing a job - helping you buy or sell a home.  Due to the fast changing market, the data on available listings is not 100% accurate.  There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent.
There are two types of agents, "Buyer's Agents" and "Seller's Agents".  It used to be common for all parties involved to work for the seller, hence the term "Seller's Agent".  Nowadays, you will most often find a different type of agent, the "Buyer's Agent".  If you are in the market to buy, it would be advisable to use a Buyer's Agent.  They can make recommendations on what terms and prices to offer as well as negotiating a deal with your best interest in mind.  If you happen to be working with a Seller's Agent, never disclose to them the top dollar you are willing to pay for any property.  Keep it narrowed down only to things that you would tell the seller directly.  

What is a buyer’s agent?
On most transactions, there is usually a listing agent and a selling agent. The selling agent is sometimes referred to as the buyer's agent, because he works on the buyer's behalf and it easier than explaining each time that the "selling agent" is not the listing agent and is actually the buyer's agent. 

If I want to buy a house and I know the property and the seller already have an agent, can I act as my own agent and negotiate a lower fee?

You probably don’t have the correct knowledge to represent yourself. The seller pays the real estate commission, not the buyer, and real estate commissions are already set in the listing contract. It doesn't cost you anything to have your own agent represent you because the seller is already paying for it.  

What are closing costs?
Closing costs are expenses incurred by buyers and sellers in transferring ownership of a property. 

What happens when you pre-qualify?
When you are pre-qualified, the lender gives you an estimate but does not formally commit to giving you a loan.  

What are comparables or comps?
Recently sold properties that are similar in size, location, and amenities to the home for sale. These properties help an appraiser determine the fair market value of a property. 

I looked at a property yesterday with a REALTOR® who seems to be clueless.  I am really interested in purchasing the property, though. Can I switch agents and still make the purchase?

If you truly want to purchase that property, the only ethical thing to do is to  purchase it through that REALTOR®. Otherwise, you could set up potential conflicts between your previous agent and whatever new agent you may choose. 

What is a commitment letter?
A commitment letter is a formal offer of a loan by a lender. The letter states the terms under which the lender has agreed to the loan. 

What is a maintenance fee?
A maintenance fee is a charge by condominium associations, co-ops, or other homeowners associations for the upkeep of the property. 

What is a gift letter?
A gift letter is when an individual gives you money for a down payment as a gift, that person must write you a gift letter so that it can be included in your loan documentation.

What is a deed?
A deed is a legal document that conveys the title to a property. 

What is a credit report?
A credit report is a report of all your debt information compiled by an independent agency. The credit report shows all outstanding debt as well as a record of payment on outstanding debts. 

What is a counter offer?
A counteroffer is an offer made by one party that makes changes to the original or latest offer of the other party. 

What is a lien?
A lien is a claim against a property. 

What is a seller take back?
A seller take back is a type of financing in which the seller arranges for the financing on a property. 

What is a title search?
A title search is the process of reviewing court records and other records to ensure that there are no liens or claims against the property you are buying. 

What is an investment property?
 An investment property is a property you purchase with the intension of using it as a rental income or for investment purposes rather than to live in. 

What is an inspection?
An inspection is a close and thorough examination of a house and property. A licensed individual usually does the inspection.

Once I find a home, how will I know what the market value is so I can make a good offer?

I will perform a full market analysis for my buyer clients on any home that you have a strong interest in. We will base the initial offer to purchase on this analysis.  

How do I know for sure how much I can afford?
We’ve found that affordability is probably the single biggest concern of today’s first-time home buyers. Don’t sell yourself short. Talk with your real estate agent. A good agent is committed to honestly and responsibly working with you to determine your affordable price range. There are many financing options available today, and some include low down payments. Your agent will help find an option that fits your budget, and you may be surprised at just how much home you can afford.

Is an older home as good a value as a new home?
It’s matter of personal preference. Both new and older homes offer distinct advantages, depending upon your unique taste and lifestyle.
New homes generally have more space in the rooms where today’s families do their living, like a family room or activity area. They’re usually easier to maintain, too. However, many homes built years ago offer more total space for the money, as well as larger yards. Taxes on some older homes may also be lower. Some people are charmed by the elegance of an older home but shy away because they’re concerned about potential maintenance costs. Consider a home warranty to get the peace of mind you deserve. This will protection you against unexpected repairs on many home systems and appliances for a full year or more after you move in.

How many homes should I look at before I buy?
There is no set number of homes you should look at before you decide to make an offer on one. That’s why providing the agent with as many details as possible up front is so helpful. The perfect home may be waiting for you on your first visit. Even if it isn’t, the house-hunting process will help you get a feeling for the homes in the community and narrow your choice to a few homes that are worth a second look.

How many homes do you think we will have to see before we find the one for us?
It depends upon how fast the market is, how much time you have spent researching on the internet and how much time you have.  Generally, the answer is, as many as it takes. In the Mississauga marketplace, you should realistically expect to see approximately 2-8 homes, depending on your price range and area preferences. Seeing this number will give you a good exposure to the market and an idea of what you will be able to get for your money.

I have heard that no one pays full list price for a home. How much truth is there in that statement?
The market average is around 97% to 99% of list price. This does NOT take closing costs and seller concessions into consideration. Drop me an email or give me a call for more information.

I hope this has been helpful to you but if you have a question that was not answered on this page please contact me at rpabbi@trebnet.com I'm here to help you.