As in any profession, Realtors are required to continue their education and many choose to specialize in certain aspects of the business. In the past, all Realtors represented the Seller by law regardless with whom they were working. With Buyer Agency, it became possible for buyers to retain the services of an Agent to represent their interests. Real Estate laws vary from state to state, but in Delaware, you may elect to be represented by a Buyer’s Agent whether you plan to buy a new home or a resale property. How do you find a Buyer’s Agent? Get a referral and check credentials. If you are moving, ask your Listing Agent to help you find a Buyer’s Agent at the new location. You can also search online at www.REBAC.net, the Real Estate Buyer’s Council of the National Association of Realtors. Only a Realtor can become an Accredited Buyer Representative (ABR); that would be a good place to start.
What does it cost? Most of the time, you will pay nothing. Any commission earned is paid by the Builder, if new construction, or by the Seller, if a resale, at the time of settlement. In this competitive market, nearly all new home communities cooperate with Realtors and pay some type of commission if you buy one of their homes. One possible exception is a “For Sale by Owner” that does not agree to cooperate with Buyer’s Agents.
Most of the quick Resales in new home communities appear to come from two groups – 1) investors who still think they can flip a new home for a profit before the community is built out, and 2) buyers from outside the area who were not represented by a Buyer’s Agent; they went directly to a new home community and bought a house without knowing the area and all their housing options. New home communities have been offering free upgrades, making some mortgage payments, waiving homeowners’ association fees or covering some closing costs. Despite all these incentives, your Buyer’s Agent will help you decide if the community is right for you. He or she will try to learn as much as possible about you and show you communities and properties that are a good match.
“Location, Location, Location” loosely translated means you should always buy the best property you can afford in the area where you want to live. When you don’t know an area, it’s even more important to have an advisor on which you can rely. There are so many choices today and there is no one source of information. Even on the Internet, there is no one web site that has a comprehensive list of communities, homes and builders and you may never find some of the best options without expert help.
You may be tempted to buy a new home even if you haven’t sold your current home. What if a year passes and you still haven’t been able to sell; will you be able to carry two mortgages? Do you have sufficient equity in your home to pay cash for a new home or will you still require a mortgage to purchase now? Can you carry the payments on a home equity loan, the new mortgage and your existing mortgage?
Don’t get me wrong, it is a great time to be a Buyer. Just take your time, find a Realtor who specializes in working with Buyers, an Accredited Buyer’s Representative (ABR) and go find your dream home! For Aging Boomers in particular, a buyer’s market this good is not likely to come around again.
