Buyers' agent is a must!

[ckrealtor]

I would never advise entering into a home purchase of any kind without an advocate on your side. Especially since, in most markets, it doesn't cost the buyer a thing.

I work in Chicago where there is a lot of new construction, nearly all of it built on spec. I have sent out numerous general voice mails to my office mates (all 180 of them) asking about one builder or another. Usually someone has experience with that builder and can give me an honest opinion of their work or at least tell me of their reputation. Most consumers don't have access to this kind of information network...unless they work with an agent.

An agent working for the seller is obligated to show you the positive aspects of the property: the beautiful granite counters, the crown moldings, etc. It is not in his client's interest to tell you that the plumbing is NOT copper and the windows were installed before the roof was on. He may not even KNOW these things.

An agent working for the buyer is obligated to look for and point out the good points AND the drawbacks of a property. In other words, your advocate will use her knowledge and network to make sure things are right for you and to fight on your behalf if they aren't. (She will also advise hiring an inspector to check out the things no one else can see.)

Agents (and builders) work in a world where EVERYTHING is negotiable. Having someone there to negotiate on your behalf makes it less likely that a builder or other seller will see you as just another sucker.

If you don't have a long-time friend who is a Realtor, don't dispair. Try calling a couple of agents and just talk to them. Most agents work with buyers and sellers so it's not important to look for someone who specifically advertises as a buyer's agent. Find someone you like and who listens to you. (It's honestly not that difficult. Though there are the Bad, the Ugly and the Unbearable, most of us are honest people who just want to help and who recognize that most of our business comes from client referrals. People who have bad experiences do not give referrals.)

I wish you the best of luck in your new home purchase.

Regards,
Celeste Karan
Personal. Professional. Service.
www.personalchicago.com

[HADD_OK]

My husband and I had the pleasure of having a good buyers agent once...and I would recommend that kind of agent to anyone whether purchasing new or old. Unfortunately true buyers agents can be difficult or impossible to find in some areas. Dual agency is the norm in most places we've owned, (three states), or other states we've considered owning in. I would highly recommend a good buyers agent...just wish anyone good luck in finding one!

[PRINCESS_KIM]

We have worked with several "buyers' agents" and none of them knew what's right and what's left. I had one agent who was adamant that I could build a deck off the backyard when the lot was off a canyon in which it was PRESERVED as open space! Another agent was soo pushy in getting us to put in an offer on a house that way over our price range...on top of that, the house was unpermitted as a 'two unit' property! Bottomline, buyer beware even if you have an exclusive buyers' agent! On another note, dual agency is practically the only way to get a house in my local market!

[HADD_OK]

To the person who said dual agency is practically the only way to get a house in their market, this is what we found in most of the states we've lived in, too. We wanted a buyers agent and the real estate agents there said, "what's a buyers agent?" On a website that supposedly list buyers agents all over the states, there was ONE listed in the state we now live in. I have emailed the agent twice and never gotten a reply. It can be VERY hard to get anyone to truly represent just the buyer. If my husband and I had not had the pleasure of having a GOOD buyers agent on our first purchase we would not be holding out any hope that they even exist anymore. Some places, they really don't.

[sandy123]

Best to interview many agents and ask friends for suggestions. If you are looking in a peticular area, look for agent sale signs to find out which realitor is strong in your area.

[Rockintosh]

There is so much misinformation contained in this topic, it's difficult to decide where to begin.

1. There is not truly any such thing as a Buyer's Agent, UNLESS you - the purchaser - are paying your real estate agent a fee for services provided; period. If your "Buyer's Agent" is being compensated by receiving a share of the sales commission on the house you buy, they are working for the Seller. This is true even in states with "Designated Agency". State laws may limit information "your" agent can provide to the seller's agent - in the interest of protecting you - but your agent's interest still lies with the sale of that property. Like anyone else, a real estate agent wants to get paid. Your "Buyer's Agent" will very likely, at some point, push you to overlook some detail that might derail a deal because, in the end, if you don't buy a house they don't collect a check.

Real estate agents and builders may be "in a business where everything is negotiable" but the reality is they won't negotiate for you like they would for themselves. They will only negotiate within the limits of what they believe will not kill a potential deal.

Have your purchase agreement, etc. reviewed by an experienced real estate lawyer, even if your state doesn't require this. Have an inspection of the house by an independent inspector (more on this in #2).

2. I would NEVER rely on a real estate agent to tell me anything about the construction of a house and not just because I've been in the construction business for 18 years. Most of them just don't know anything about construction; those who think they do are almost always wrong. Your local building department will also NOT help you assess any issues regarding quality control. By law, they cannot. All the building department can do is to assess the work performed to determine if it meets the requirements of the building code that municipality enforces. Those inspections are snapshots only - they are assessments of construction at specified points in time. It is easy to hide things from an inspector if the builder wants to do so. Most inspectors are limited in the amount of time they can spend on a given inspection; if the builder wants to distract them to hide something, he often can - easily.

Hire an independent inspector, contracted directly to you. If you're lucky, your state has regulations governing who can be a home inspector. Michigan does not. If your state doesn't, look for one who's a member - in good standing - of the American Society of Home Inspectors. At the least, that membership means your inspector has pledged to meet some standards for training and experience. Accompany that inspector on the inspection. If you're having a house built - go on each inspection. If a given builder won't allow such third party inspections; find another builder.

3. Get a copy of the plans for your own house. If you are having a house built, insist on a copy of the "as-built" plans. These plans show the deviations from the construction plans for the locations of the sewer, sump, electrical panel, any structural changes, etc. You need these if you ever want to remodel.

4. That builder who is charging 20% profit is really charging a 20% mark-up for OVERHEAD AND PROFIT. If your builder is actually making a 20% profit on your house, after covering his overhead, you're paying too much. Nationally, most builders' gross profits on a house - before taxes, but net of overhead - range from 8% to 12%.

[PRINCESS_KIM]

To add to the above message, if the owner does not have plans for the house you are buying, you will be able to obtain a copy of the building plans from the County but will need to obtain owners' signature of authorization in order to do so. You will be responsible for duplication/copy fees, if any.

To take it one step further, we found many homes who have been "remodeled" with additions i.e. family room, bathroom, garage, deck, pool, etc. Our local city has a "permit/records" office where you are able to obtain copies of permits for the additions. It will show you who did the improvement, when, what was done, city inspection clearance and inspection sign-off for work done to include electrical, heating, plumbing, etc. In a buyer's market, you may be able to have leverage on the seller's asking price. To obtain permit histories, owner's permission is not required and you may view them without having to pay any fees. You can do this before putting in an offer so you will know where you stand. I always make a habit of researching permit histories as part of getting my comparative market analysis (CMA).