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I haven't even seen anything and have to drive 2 hours to see him and he's telling me I should make an offer if I see something I like (via email) because homes in my price range go fast and for cash?
What does making an offer entail anyway? Is it a commitment or a legal contract?
He's probably being honest with you, and warning you that if you see something you like, be prepared to make an offer on it pronto and don't spend a lot of time hmmming and hawing over it.
For example, with some recent sales we've been involved in over the last two weeks in the Atlanta metro area:
a) Home hit the market at 5 pm on a Friday, by 8 am Sunday morning, the seller has 12 offers they are sorting through.
b) Home on the market for FOUR hours, has three offers. If the home is in a high-demand neighborhood and the agent knows the buyers are desperate to get in that neighborhood, agents are beginning to write up contracts for homes prior to showing them so clients can e-sign them right then and there and submit them.
c) Another agent in the office came in depressed because a home her client wanted had 20 offers on it within 36 hours. TWENTY!!! Good lord. The client waited a day before deciding to go ahead with an offer -- at that point, it was too late.
Given multiple-offer situations, the contracts that are all cash are almost always preferred (especially if there's no appraisal contingency), because working with a bank loan introduces another level of uncertainty and possible risk (i.e., the loan may not be approved).
In Georgia, there is a period for "due diligence" after a contract is executed by both parties, where the buyer has an opportunity to have the house checked out and can back out of a deal for any reason. It's a little nerve-wracking -- a buyer could simply change their mind or find something they like better and just terminate the contract within that due diligence period. Ask your agent what the rules are in your area.
Typically agents who advertise on sites like realtor.com are top producers and don't have time to deal with buyers who don't know what they are doing or don't know what they want. You need someone with more patience and time to spend holding your hand through this buying process.
Bunk.
If an agent going to go to the trouble and financial investment to advertise on a site like Realtor.com or Zillow, then they aren't going to ignore the leads that they get. However, after an initial introduction, you might get assigned to a buyer's agent on their team instead of the lead agent -- buyers agents are generally pretty patient with hand-holding and explaining processes, etc.
Bn agent is paying hard money for those leads, and aren't inclined to waste money.
If you can afford to take your time to buy, TAKE THE TIME. Since you are new with home buying, you may have to look at a number of houses before you know what to look for, how to spot problems, realize what you REALLY are looking for (your priorities). If you're looking for a long term house.
If you're looking for a house to live in for a few years, it's not as big a deal as looking for a house to spend 20 years in.
TAKE YOUR TIME. Remember that agents, for all their expertise and assistance, are salespeople. Have you ever bought a car? Think of it like that. The salesman is not going to point out problems with the car (or house). YOU have to learn to do that. And that takes the experience of looking at a number of houses.
Instead of having one agent, you might spend weekends in that city (can you afford a cheap motel?), and arrange viewings yourself through listing agents, in combination with going to open houses. OPEN HOUSES ARE A GREAT WAY TO VIEW A NUMBER OF HOMES IN AN AREA IN A SHORT PERIOD OF TIME.
Do not let yourself be pressured into making an offer to buy real estate. I repeat: Do not let yourself be pressured into making an offer to buy real estate before you are SURE you want to.
I'll say it again: Do not be pressured into making an offer on real estate before you are comfortable doing so and are positive that's the right house for you. TAKE YOUR TIME. It's your money you'll be spending, you will be the one living in that house, and you will be the one facing the consequences if the decision turns out to be a bad one. Once you sign on the dotted line, all those nice people you dealt with in the process will disappear.
If you can't afford a cheap motel, drive to the city for several weekends. Line up in advance open houses....and see as many as you can, then drive home the same day.
How familiar are you with the city? Is it a large city? Reason I ask is...if it's a large city and you're not familiar with it, it will take you longer to view houses, since you have to view areas to see if those areas are acceptable to you, before you even consider lookng at houses in that area.
Check out neighborhoodscout website to check out facts of neighborhoods. Another housing site has crime stats for neighborhoods at bottom of page in map format.
Once you feel comfortable knowing what to look for in a house and have narrowed down some areas you like, then you can get a realtor, who can focus on those things for you. Again...try to hit the open houses in those areas, with or w/o your realtor.
Please take your time. Don't be rushed. It's your house, your money, your time schedule. Remember that people who will earn money from your purchase are in sales, just like any other sales product. A house, like a car, needs to be examined, test driven (open the windows, run the faucets, open the fence gate), and the purchase thoughtfully considered.
Please take your time. Don't be rushed. It's your house, your money, your time schedule. Remember that people who will earn money from your purchase are in sales, just like any other sales product. A house, like a car, needs to be examined, test driven (open the windows, run the faucets, open the fence gate), and the purchase thoughtfully considered.
Yes and no. While it's true that there are some real estate agents who act more like salespeople (I detest that a real estate licensee is often called "real estate salesperson"), there are truly a number who do act as agents--looking out for the best interests of their client. I feel that one of my biggest responsibilities as an agent is to point out the potential problems with a property, even going so far as dissuading people from buying certain properties. I would never encourage someone to buy a property that I wouldn't be comfortable buying myself.
Looks like you are not compatible. Simply find another agent.
Typically agents who advertise on sites like realtor.com are top producers and don't have time to deal with buyers who don't know what they are doing or don't know what they want. You need someone with more patience and time to spend holding your hand through this buying process.
That's not true. All sorts of agents advertise on realtor.com. It's also not true doesn't have time for a buyer. If they have good systems in place the volume should be manageable.
Also, to the original statement it could simply be that the buyer is looking in a sellers market and it's just a fact that homes are selling fast. If that's true then the agent is doing a good job setting expectations.
If you can afford to take your time to buy, TAKE THE TIME. Since you are new with home buying, you may have to look at a number of houses before you know what to look for, how to spot problems, realize what you REALLY are looking for (your priorities). If you're looking for a long term house.Maybe, but maybe not. Someone who's always looking for a better home never finds the right home.
If you're looking for a house to live in for a few years, it's not as big a deal as looking for a house to spend 20 years in.
TAKE YOUR TIME. Remember that agents, for all their expertise and assistance, are salespeople. Have you ever bought a car? Think of it like that. The salesman is not going to point out problems with the car (or house). YOU have to learn to do that. And that takes the experience of looking at a number of houses. Garbage. Good agents will. I do all the time. Most agents want the buyer happy in order to get referrals. It's not like a car salesmen at all.
Instead of having one agent, you might spend weekends in that city (can you afford a cheap motel?), and arrange viewings yourself through listing agents, in combination with going to open houses. OPEN HOUSES ARE A GREAT WAY TO VIEW A NUMBER OF HOMES IN AN AREA IN A SHORT PERIOD OF TIME.More garbage. Not a problem to meet multiple agents but interview them, pick one, and start looking. Open houses are a gigantic waste of time. I can show buyers more appropriate homes in less time than they can via looking at open houses.
Do not let yourself be pressured into making an offer to buy real estate. I repeat: Do not let yourself be pressured into making an offer to buy real estate before you are SURE you want to.Fine, but once you find one make a decision and jump on it.
I'll say it again: Do not be pressured into making an offer on real estate before you are comfortable doing so and are positive that's the right house for you. TAKE YOUR TIME. It's your money you'll be spending, you will be the one living in that house, and you will be the one facing the consequences if the decision turns out to be a bad one. Once you sign on the dotted line, all those nice people you dealt with in the process will disappear.
If you can't afford a cheap motel, drive to the city for several weekends. Line up in advance open houses....and see as many as you can, then drive home the same day.
How familiar are you with the city? Is it a large city? Reason I ask is...if it's a large city and you're not familiar with it, it will take you longer to view houses, since you have to view areas to see if those areas are acceptable to you, before you even consider lookng at houses in that area.
Check out neighborhoodscout website to check out facts of neighborhoods. Another housing site has crime stats for neighborhoods at bottom of page in map format.
Once you feel comfortable knowing what to look for in a house and have narrowed down some areas you like, then you can get a realtor, who can focus on those things for you. Again...try to hit the open houses in those areas, with or w/o your realtor.
Please take your time. Don't be rushed. It's your house, your money, your time schedule. Remember that people who will earn money from your purchase are in sales, just like any other sales product. A house, like a car, needs to be examined, test driven (open the windows, run the faucets, open the fence gate), and the purchase thoughtfully considered.
I'm rather offended that you don't think an agent is capable of looking out for a buyers best interest.
Yes and no. While it's true that there are some real estate agents who act more like salespeople (I detest that a real estate licensee is often called "real estate salesperson"), there are truly a number who do act as agents--looking out for the best interests of their client. I feel that one of my biggest responsibilities as an agent is to point out the potential problems with a property, even going so far as dissuading people from buying certain properties. I would never encourage someone to buy a property that I wouldn't be comfortable buying myself.
Real estate agents are people and are all different. But the reality is that they are sales people. That's how they earn a living. I don't know any agent who will escort a prospective buyer around to see 50 or more houses, which is what it may take.
Before I bought my house 23 years ago, I looked at over 150 houses in a year and a half. I was new to the city, it was a large city, and I was unfamiliar with the housing there. Agents, being sales people, cannot afford to spend that kind of time and money for a possible sale in the distant future.
Had I been working with an agent, I would've been pressured to buy long before I did. I bought when I wanted, and I bought the right house.
Also, the agent matters. When I did get an agent, I wasted a lot of time using one agent, who showed me a number of houses, some of which had precisely what was on m "I do not want under any circumstances" list (orange brick, a pool, painted brick). I changed agents, who zeroed me in on one area that even she hadn't known about but found out about...and we hit the open houses there one weekend and saw five houses. I bought one of those houses.
I kept a list of the houses I viewed. I stopped the list at about 150 houses. So I saw more than that. You can see a lot of houses if you hit the open houses concentrated in one area.
Real estate agents are people and are all different. But the reality is that they are sales people. That's how they earn a living. I don't know any agent who will escort a prospective buyer around to see 50 or more houses, which is what it may take.
Before I bought my house 23 years ago, I looked at over 150 houses in a year and a half. I was new to the city, it was a large city, and I was unfamiliar with the housing there. Agents, being sales people, cannot afford to spend that kind of time and money for a possible sale in the distant future.
Had I been working with an agent, I would've been pressured to buy long before I did. I bought when I wanted, and I bought the right house.
Also, the agent matters. When I did get an agent, I wasted a lot of time using one agent, who showed me a number of houses, some of which had precisely what was on m "I do not want under any circumstances" list (orange brick, a pool, painted brick). I changed agents, who zeroed me in on one area that even she hadn't known about but found out about...and we hit the open houses there one weekend and saw five houses. I bought one of those houses.
I kept a list of the houses I viewed. I stopped the list at about 150 houses. So I saw more than that. You can see a lot of houses if you hit the open houses concentrated in one area.
TAKE YOUR TIME. Remember that agents, for all their expertise and assistance, are salespeople. Have you ever bought a car? Think of it like that. The salesman is not going to point out problems with the car (or house). YOU have to learn to do that. And that takes the experience of looking at a number of houses.
Actually, a good buyers agent IS going to be pointing out issues with a house, and they are going to be pitbulls when it comes to inspections. It's our fiduciary responsibility to make sure that the buyer is getting value for their investment. Sagging floors, water stains on the ceiling, cracked walls from settling, polybutylene pipes, 20 year old HVAC units, sagging gutters, rippled roof shingles . . . ALL of these are things that are routinely pointed out to a prospective buyer -- ESPECIALLY a new one, who may not know to look. They may decide to buy, anyway -- but at least they are walking into it with their eyes wide open, knowing the challenges that are coming down the road. Not to mention that being able to compare it accurately to other homes is also an important skill, to be able to determine the true value as closely as possible -- and letting your buyer know that the price being asked for can't be supported by comps. Again -- they may decide they love the home/neighborhood/school so much they don't care -- but at least it is an informed decision.
A new buyer doesn't know what they don't know. They open a closet and looking knowingly in it, without ever noticing the huge water leak in the ceiling corner. They are swept away by the size of a family room and a fireplace -- but don't focus on the areas that look suspiciously like settlement cracks that have been spackled and painted a bit inexpertly. They don't know how to check the age of a HVAC or water heater, they often don't recognize cheap thin granite as compared to a higher quality of stone, they just look at the floor and don't realize the quality of the engineered hardwoods (or, worse, the new vinyl wood-look flooring advertised as "hardwoods!"). They don't think to examine under kitchen and bathroom sinks for evidence of plumbing issues. In short, they look at the lipstick on the pig and go, "Pretty!" An experienced agent will point out the pig underneath. They also direct the buyers attention to the large power lines running behind the property, evidence of water intrusion in the basement, and the accessibility of the neighborhood entrance at rush hour.
Someone who's always looking for a better home never finds the right home.
I'm rather offended that you don't think an agent is capable of looking out for a buyers best interest.
I did not say an agent is incapable of looking out for a buyer's best interest. But agents are sales people. That's how they earn a living: selling a product. That's not an offensive statement at all. There's nothing wrong with being in sales.
Your statement above about spotting "someone who's always looking for a better home" but never finds it, says it all about your point of view and your concerns. You are trying to make a living. You can't afford to show someone however many houses it takes for however long, in order for that person to find the right house. Your time would be better spent with someone who is .ready to push the button and buy quickly. Why? Because that's how you pay your mortgage. Selling a house.
When I bought my house 23 years ago, I kept a list of the houses I viewed. I stopped the list at 150 houses. Any agent would have viewed me as, like you said, "someone who's always looking but never finding one." But that was not the case.
I didn't know how to buy a house all by myself, I didn't know the kinds of houses in the area, I didn't know the city. Consequently, I had to look in all sorts of areas and at all kinds of houses until I knew what I was looking for, was able to spot quality or shabby building, was able to prioritize my needs in a house, and decide on the feel of an area that I wanted. My time was also very limited because of work.
No agent would've shown me that many houses. In fact, it would've been difficult to see that many houses if I'd had to arrange things thru an agent. I had limited time because of work, so I was able to see that many houses ONLY because I did the open house circuit.
I was definitely a serious buyer. I just needed to see that many houses, and what I wanted was hard to find. I finally found it, and bought it. I got an agent later on in the process, when I felt I had a handle on things and thought I'd be able to spot what I wanted when I saw it, and the price it would warrant. An agent earlier in the process would've pressured me into buying earlier houses that I liked but which weren't quite what I wanted.
It was my house, my money, my decision, and I was the one who would have to live with the decision. All I needed an agent for was to arrange showings and do the paperwork and suggest certain areas that I maybe didn't know about (which is what my agent did). I didn't ask for advice on the offer price. It never occurred to me. Only I could decide that. The agent I ended up using was wonderful. She found the area I finally bought in. She didn't even know about it, but asked around. She and I hit the open house circuit in that area...and boom. I found my house. But I was only able to recognize how good the area and the house were for me because I had viewed so many houses for comparison.
No offense was intended by pointing out to someone that agents are salespeople. That is what they are. BTW, I used to be a real estate agent many years ago for a short while.
Last edited by bpollen; 05-27-2016 at 08:15 PM..
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