Buyers Beware

This page is very important to Buyers as it contains certain issues, information and “tricks of the trade” that Buyers need to be aware of when choosing a real estate professional and during the process of buying a property.

• Before start looking for your dream house, it is very important to obtain a written mortgage pre-approval from your lender. You don't want to spend a lot of time to find your dream house only to find out later that you can not get the necessary mortgage from the lender! In worst cares you could also lose your deposit and get sued by the seller for damages if you have a binding agreement and your deal falls through. So, always get a mortgage pre-approval to increase your chances and to know where you stand. Another benefit of a mortgage pre-approval is that your interest rate will be set to the rates at time when you obtained the pre-approval. If the interests rise you have a lower interest rates and if the mortgage rates fall, you will get the new rates!
  After all said, a pre-approval does not guarantee obtaining a mortgage!! Consult with your mortgage specialist.
  In years, I have found a few good mortgage professionals that I work with and recommend. Please send me an e-mail and ask me for their contact information.
  
  
• In my opinion, the most important concern for both buyers and sellers should be the goal of a real estate professional that they are planing to hire. If the REALTOR’s goal is different from your goal, then they are not really working for you and your benefit. They are working for commission or something else. Remember, when your goals differ, your deal will suffer!! I personally don’t work for my commission! Rather, I work for my clients, I earn my commission and I live with it! That is what all REALTORS should do and the good one do!

• Most buyers choose not to get a commitment from their REALTOR and to make a commitment in return. This is a huge mistake as the Buyer Representation Agreement (BRA) is designed to protect both side of the agreement, i.e. the buyer and the agent. It creates a Win-Win environment with between the parties when you hire the right REALTOR. It Also binds the real estate professional to preform his/her duties towards their client and protect the interests of the client.
  For more information, please visit my BRA page. Also, you can visit BRA First.
  
  
• Most of the time, a real estate transaction involves two brokerages and agents. Hence a listing brokerage or agent and a buyer (also called selling) brokerage or agent. If there is only one brokerage involved in a transition, then there is a multiple representation. This is also true if there are two REALTORS from the same brokerage. By law every REALTOR has to explain this to you before signing a contract. Ask your REALTOR to explain this to you.
  
  
• If you have a REALTOR that you are working with and if you decided to find out about a new construction from a builder, DO NOT go to the builder and visit their sales office with out your REALTOR. It is important to ask your REALTOR to accompany you when you visit the builder's sales office. The reason is that if you go there with out your REALTOR, most builders will not give them their commission and you may be obliged to pay it! Therefore, make sure your REALTOR is with you so the builder pays the commission and not you. Also, when dealing with builders, a good REALTOR can give you advises and hints that are greatly to your benefit, you are not aware of them and the builder will not tell you!
  
  
• Having your desired house to be inspected is always a very good idea and I highly recommend it. However, beware of the inspectors that are too picky or they do not have enough knowledge. They can cause you a lot of unjust and unnecessary insecurity and aggravation
  
  
• Although it is important to have an inspection clause in your offer to have an professional inspector, inspect the property; however, you must keep in mind that in seller's market (when market is "hot") multiple offer situations are common and inserting the inspection clause in this may decrease your chances in purchasing your desired property. Seller's tend to lean towards the offers that are "clean", meaning little or no conditions, so they could have a firm deal. This is a risk which you should decide to take or not. On one hand you might not be able to purchase your dream house that you looked so much to find and on the other hand, if something is wrong with the house, you will not know it with out a proper inspection. One remedy to this is to have your REALTOR to ask the selling REALTOR to arrange an appointment with the seller so you could have the house inspected before the offer presentation date. The benefit is that you will go to the offer presentation, knowing what you need to know about the property and with a clean offer. The downside is that if your offer doesn't get accepted, you have lost the money you spent on the inspection! It is a tricky situation. I would say it is better safe than sorry! Consult with your REALTOR.
  
  
• Inspection is important not only for resell homes, but also, for new constructed houses and condominiums!

• Having a good knowledgeable and caring lawyer is very important in a real estate transaction. A good lawyer can save you thousands in legal fees. Even when you are buying a new house or a condo from a builder, a good responsible lawyer can negotiate some of the terms to your advantage and help you save.  So, choose wisely and do not choose your lawyer base on your lawyer fees!
  
  

If you have any questions or need any advise, please do not hesitate to contact me. I will be more than happy to assist.