|
Choosing a Buyer's Broker
Click Here to Print this Page
The listing broker… both by law and custom… “represents the interests of the bank… at the expense of the buyer.” Buying a repo is truly a "buyer beware" sale.
If you're feeling overwhelmed by the (foreclosure) buying process you're not alone.
So are 70% of the real estate agents in Orange County. In the years 2000-2006 there were VERY few foreclosure homes for sale. The spike in foreclosures is a recent phenomenon; many of today's agents haven't learned the process.
To verify an agent's experience: http://www2.dre.ca.gov/PublicASP/pplinfo.asp.
Simply input their name and search.
The Dept of Real Estate’s records will post the agent’s original licensing date, the name of their employing broker and if there are any complaints against the agent.
The Advantages of a Buyer's Broker/Agent
A "buyer's broker/agent" has specialized experience for representing "buyers."
A successful buyer's broker typically has more than 5 yrs.exp.in the R.E. industry.
Buyers brokers perform the following services.
1) Negotiating with the Bank
"The typical buyer has no defense against the sales tactics of a professional agent."
Banks employ only experienced R.E. brokers to sell their distressed properties.
These brokers are rewarded with more properties to sell ....if they "perform."
These performance standards are always at the expense of the buyer.
"Performance" is based on getting "top dollar" for the property (banks are not in the business of giving away assets).
"Performance" is also based on:
a) minimizing repair and renovation costs by skimping on repairs and fixtures.
b) Selling all properties "as is" with minimal disclosure of the properties defects.
This results in the buyer paying for additional inspections and wasting time.
Otherwise...any profit gained by getting a low sales price...can easily be wiped out by leaky pipes, cracked foundations and mold. (None of these said defects is a bank responsible for...unless they are obvious to the untrained "naked" eye).
2) Identifying the Bank's "Bait and Switch" Tactics
Banks frequently low ball the sales price of the home to draw in as many offers as possible.
Buyers (who do not have their own agent) can easily be drawn into a "bidding war"
thinking the banks agent...has their own (the buyers) best interest at heart.
A buyer's broker can document the home's value & not allow a buyer to "over bid."
The biggest mistake buyers consistently make is\...that they “want a deal”.but they don't (or simply won't) take the time to educate themselves on the finer points of the process.
Purchasing any home requires patience and forethought...it's never a simple process.
Your future real estate investment will affect where your child attends school, how far you commute and possibly.... your retirement plans.
|
