Buyers FAQ

Buyers FAQ

Q. What typically goes into an agreement for buyer representation?

A. Like any contract, a buyer representation agreement needs beginning and ending dates, acknowledgement of your willingness to be represented by the company and its agent, and what (if anything) you will pay for real estate-related services. Buyer agreements may also indicate whether you'll work only with one company/agent or several.

Q. What is an Agency Disclosure?

A. An Agency Disclosure is a state-required document, disclosing to you as a principal in a real estate transaction (in this case, the buyer) whom the agent(s) in that transaction represent. A state's Agency Disclosure simply notifies you of that state's agency laws; it does not obligate you to work with any particular agent or broker.

Q. How are buyer's agents compensated?

A. It used to be that seller-only agency was "customary" in residential real estate. The real estate commission was paid by the home's seller and deducted from the proceeds at the time of closing. Real estate agents (and the brokers with whom they were licensed) represented the interests of the property's seller. The buyer, however, was unrepresented in the transaction - and usually not even aware that this was the case!

With the advent of buyer agency, this need no longer be the case. Home buyers are now able to be fully represented by a real estate agent in the purchase of property.

The buyer and real estate agent come to terms on which services the buyer-client is seeking, and the manner in which the agent will be compensated for providing those services. In most cases, a fee or commission is derived from the seller's proceeds of sale and shared between the seller's (listing) and buyer's (selling) agents. In some cases, the buyer makes a direct payment to his or her agent.

Buyers sometimes pay their agent/broker directly for services in finding and purchasing a home. If a broker charges buyers a direct fee, it should be outlined in an exclusive agency agreement that the buyer signs when engaging the broker.

Payment arrangements vary, depending on market conditions, customary practices and consumer expectation. Some eager home buyers choose to offer an "incentive," giving their real estate agent additional motivation (generally a cash bonus when title transfers) to find them the "right" property.

Any of these options may be attractive to a home buyer in a specific marketplace. The law of "supply and demand" predominates in real estate. So, as you interview prospective agents and weigh their respective services, consider which compensation options will move you toward your home ownership goal with terms and conditions appropriate to your individual needs.

Q. Are you a member of the Multiple Listing Service?

A. Yes - As RE/MAX Allegiance agents, we are members of the local MLS, as well as being members of the national, state and local Associations/Boards of Realtors®.

Q. Do you cooperate with other companies' agents?

A. We work according to specific laws, regulations and customs. As RE/MAX Allegiance agents, we work cooperatively with other companies, showing and selling each other's listed properties.

Q. Should I buy first ... or sell first?

A. The answer to this question lies squarely with you. Do you need the equity that's built up in your present home to complete the purchase of your new home? If so, you either need to sell first or consider a bridge loan or house sale contingency. We strongly suggest that you engage a real estate agent with whom you can enter a trusting relationship. Then discuss this question with him or her, touching on every aspect of what it may mean for your particular situation.

Q. I'm thinking about buying a home. Where do I start?

A. The first step in the plan for potential homebuyers is a credit check. It's best to keep an eye on your credit reports so you can spot any mistakes and dispute them. Also, avoid running up high credit card bills in the months prior to buying a home.

These two things will help you in the next phase of your game plan, pre-approval on a mortgage. A full-service real estate broker will be able to help you with this portion of the plan. Pre-approval includes analyzing your income, assets and present debt to estimate how much house you can afford. This means the lender has committed to loaning you the money subject to the house you choose to buy. Being pre-approved for a loan will make you attractive to sellers because the contract won't be tied up with financial issues.

After you know how much you can spend, you are in the homestretch. This is the time for you to become familiar with neighborhoods and the features of a home. Educate yourself by visiting local real estate Web sites and viewing the inventory of listings. This is also the time for you to decide what you want and need in a home.

A solid game plan needs a good coach. A RE/MAX Allegiance Realtor can help you through all steps of the plan, prepare you for any unforeseen problems and eventually help you to buy the home of your dreams.

Q. Why do I need an agent to help me find a home with all of the technology and advertising available?

A. The Internet and newspaper ads are good places to start researching what the current housing market is like. You can also find information to help answer many of your financing questions. Once you have looked at what's available to you it's time to get a professional involved. You might spend hours scanning newspaper ads and home magazines, driving through neighborhoods looking for "for sale" signs or phoning on individual listings, and still miss the opportunity to see some of the best homes available. A professional RE/MAX Allegiance agent will save you time, money and make a wealth of information resources available to you ... so together you can find that special home.

FAQ For Virginia Beach Home Buyer's

questionQ. What should I consider when I start to look for a home?

A. First, put together a list of features and benefits you want in a home. Think of such things as pricing, location, size and amenities. If you can't get a home at the price you want with all the features you are looking for, figure out what features are most important to you and rank them in priority so you know what you're willing to give-and-take. Would you rather have a large kitchen and smaller bedrooms? Also consider your needs in the future. Maybe now is the time to buy a larger home rather than expanding a smaller home in the future. Your Realtor can also help you compare the price of homes with the features you are looking for or suggest alternate uses of space.

Search all Virginia Beach real estate and homes for sale!

Q. How do I choose between renting or buying?

A. Owning a home offers tax benefits as well as the freedom to make decisions about your home. Homeowners, unlike renters, can secure a fixed-rate loan and lock in their monthly payments and make investment plans knowing these expenses won't change substantially. However, rent can go up each year without the renter's input. Renters are at the whim of their landlord, while homeowners are in control of their property when it comes to decisions, such as whether they allow pets, any decorating or improvements that are permanent.

Q. As a buyer, do I have the right to obtain past information about the property I am interested in purchasing?

A. Yes. Sellers are required to disclose all known defects associated with the property. With the help of your Realtor, you can find out what has happened to the property in the past. You should make careful observations, examine the property and request or otherwise obtain any records important to you. These requests should be in writing. If you decide to put an offer on a home, it is important to have a professional inspection completed before closing.

Q. If I am thinking about buying a newly-constructed house, why do I need an agent?

A. Building a home often requires hours of research and decision-making. You must first decide what area you want to build in and which builder you want to work with. After these initial decisions, you still have many choices of floor plans, building materials and fixtures. Personalization and freedom of choice are some of the benefits of building a home, but they can also be very stressful. An agent will guide you through the entire home building process and help you along the way should you need it. You'll still get to make the choices on your own, but your agent will be there to help, keeping your best interests in mind. Also, buyer representation comes at no cost to you.

Contact Information

Photo of The Butler Team Real Estate
The Butler Team
RE/MAX Allegiance
4000 Virginia Beach Blvd. Ste 164
Virginia Beach VA 23452
757-237-2751
Fax: 757-233-1552

The Butler Team, ABR, CRS, GRI

Dave  Macklin     Dave@ButlerTeamHomes.com 
Office: 757-237-2751      Fax: 757-233-1552