Shopping for a Realtor? Here are a few questions homeowners should ask when selecting a Real Estate Agent
1. How do you get paid?
2. Who pays your commission?
3. If I am interviewing other agents, should I tell the agent?
4. Do you have client references?
5. How local are you? Do you know about local disclosures? Tell me more.
Answer #1
Realtors make their living working with clients and get paid when the buyer find a house. This is at the end of the escrow period when the buyer has keys in hand.
Answer #2
The agent listing the home has spoken to the sellers prior to putting the house on the market and they have negotiated the commission. Once the property goes on the market for sale, it is entered into the multiple listing service, and the commission for both agents is noted and paid to the brokerage firm at the close of the transaction.
Realtors are compensated for their time and knowledge through the brokerage firm where they hang their sign. A Realtor does not receive the full commission, but has to deduct errors and omission insurance, marketing, dues and subscriptions, and office fees incurred during the course of each transaction.
Answer #3
It’s important to connect and make sure you communicate well with your agent because buying a home is one of life’s major moments.Open communication includes potential clients letting both agents know there is another agent they will be meeting with. It’s always the buyer’s choice who to work with. For example, if you are the type of person that likes things to be done quickly whenever possible, find a Realtor who works the same way. If you prefer email, and text versus a phone call, don’t choose an agent who doesn’t have internet access on their phone. Something this simple can make a big difference in the flow of the transaction if you are the type of person who is very busy and needs a response to a burning question.
Answer #4
We are so fortunate to have technology at our fingertips these days it should be easy to find past client reviews on Zillow, Trulia, or the agents personal website. Find out if they have helped buyers with bank owned properties and short sales if that’s the type of home you are focused on buying. If you can’t find any testimonials about the agent, ask them to put you in touch with a happy past client and don’t forget to ask when the last sale they made was. You want to make sure you are working with a full time agent.
Answer #5
A local Realtor will know about local ordinances, and can direct a buyer to information about schools, crime, etc. As an example, in the city of Oakland where I sell homes, there is a new ordinance regarding sewer laterals http://www.ebmud.com/psl and knowing the law was going to pass, I did a video with a vendor so buyers would be aware of what a sewer lateral is all about. It’s just another way I’ve found to help clients without taking up a lot of their time. You can watch the video at http://www.youtube.com/user/Rockrdigedigs?feature=watch
5 Speaking of Neighborhoods, you can type in any address in these two links to find out more about crime and schools. http://gismaps.oaklandnet.com/crimewatch/ and http://publicportal.ousd.k12.ca.us/19941094182743913/site/default.asp
7. http://www.facebook.com/pages/Local-Happenings-and-Events-in-Oakland-CA-and-Surrounding-Cities/109002089136127 is my Facebook page and I post a lot of local event and great articles like the New York Times calling Oakland one of the best places to travel this year: http://travel.nytimes.com/2012/01/08/travel/45-places-to-go-in-2012.html?ref=travel. Our restaurant scene is incredible!
What should the main elements and what should a buyer understand about singing a real estate sale contract?
A buyer should be aware that once an offer is negotiated between a buyer and seller, a real estate sales contract is a legal and binding agreement once the offer has been signed and accepted by all parties.
In California, earnest money, or an initial deposit (usually 1%-3%) of the purchase price is deposited with a title company who is acting as an escrow holder within three business days after acceptance of the offer.
The buyer has the right to chose what title company they want to open escrow with since there are title and escrow fees assigned to the transaction that are a customarily paid for by the buyer.
Once in contract, there are three contingency periods that are important to note. The loan, appraisal, and inspection contingency are the timelines agreed by both parties for the buyer to do their due diligence.
Using the standard 17 days as an example, within 17 days after acceptance, a buyer has to remove these contingencies or cancel the agreement. If the contingencies are removed, and then the buyer cannot perform, meaning continue forward with the purchase, then his money is escrow, can be retained by the seller as liquidated damages. This is all depending on how the contract was written and agreed upon. On this same note, a dispute could be resolved in court, or through mediation or arbitration.
What should Oakland buyers be thinking about when writting an offer on a house.
When a buyer is touring a home they should look at the floor plan and amenities the home has to offer. If the home fits their criteria, as an agent, I like to sit in the living room or dining room table and talk to my client about writing an offer and explain in greater detail the contingency periods in an offer.
An inspection contingency is a buyer way out of the sale if the discovery reveals the house has too many issues. Or, it can become a buyer’s opportunity to report their findings to the seller and ask for a credit towards closing costs, or even for the repair to be done prior to the close of escrow.
Buyer’s should always have the home inspected by a termite company and a home inspector, and based on their findings, schedule other inspections with licensed plumbers or electricians and should plan to be at the house while the inspection is taking place.
In some areas, it is customary for a seller to provide disclosures prior to the client making an offer. Any red flags would be disclosed but it doesn’t mean the buyer should not proceed with their own inspectors. A home I recently showed a buyer had a partial brick foundation. Not all insurance companies will ensure a home with a brick foundation and this could be a serious problem. The buyer decided the house didn’t have enough of what he was looking for in a home to want to purse the property further, if he had decided to write an offer on this home, I would have suggested the buyer to hire a structural engineer who is familiar with foundations and homes built in the early 1900’s which is customary in our area.
If you're looking for a home to purchase this year or next, I hope I have the chance to earn your business and you can find out what happens next when a home buyers writing an offer.
Many times in Real Estate the need for a Power of Attorney comes into play.Recently I had a client who traveled for work and wasn't able to sign the required documents prior to closing on the sale of his home.
Through the title company and the lender, he set up a Power of Attorney and allowed someone he trusted to sign on his behalf.
Powers of Attorney are legal documents. Basically, the principal (you) delegates to someone you trust (called your agent or attorney in fact) the power to engage in financial transactions in your name, using your assets, with the same legal effect as if you had signed the transaction documents yourself.
Powers of Attorney (POA) have some variations such as is it durable? it is a springing power, or is it limited or general? Does it permit modification or trust or does it permit gifting and long term care benefit?
You can quickly see why it's important to use a professional who is versed in the many options and which you need.
In the case of the real estate example above, the POA can be limited or general. You are authorizing an agent to sign a deed and other documents to close a specific sale or escrow and it is limited in time with a fixed expiration date, or it can be very general and comprehensive in nature.
If you believe you may need a power of attorney, it's best to let your real estate professionals know in enough time so they can gather the people and the paperwork needed to move forward towards a successful closing of the transaction. Best of luck:)
Elisa is a full time Realtor in the east bay working with buyers and sellers in cities like Oakland, Berkeley, Emeryville, Alameda, and El Cerrito. Property Management Services available.
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