Value Of A Buyer’s Agent
Does using an Exclusive Buyer Agent hold value to a buyer? How do Exclusive Buyer Agents differ from traditional real estate agents?
An Exclusive Buyer Agent who works in Chicago, IL, Rich, has been working in the construction industry for over 30 years. By having this history behind him, his value as a buyer’s agent! is even higher.
From his viewpoint as a skilled construction tradesman, he is able to expose possible problems to a buyer viewing a home. He holds value to the home buyer being aware of all aspects of the home, good and not so good.
Most Exclusive Buyer Agents are paid out of the commission at closing. Basically, they don’t get paid if the home buyer does not find a house to buy. It is in the EBAs best interest to expose every aspect of a home so the deal does not fall through later. Good EBAs will also counsel when to walk away from a deal.
Rich says he shows things to the home buyer like peeling paint, windows that need replacing, water leaks, etc. Being in construction gives him the advantage of estimating what the financial setback will be for the buyer when he finds problems with the homes.
Having an idea of the cost of repairs can be invaluable at the time of closing negotiations. Along with a detailed professional home inspection report, an agent who is familiar with this type of knowledge will be educated enough to make negotiations that are repair related.
According to Money Magazine Joseph Eamon Cummings, a study done by US Sprint found that over 200 of their employees who relocated using buyer’s brokers paid on average 91% of the listing price on their homes.
Buyers who use a traditional real estate agent normally pay around 96% of the listed price. So by buying a $200,000 house, the home buyer would end up saving somewhere around $10,000 with a buyer’s agent!
Rich has his broker’s license as well as his knowledge in construction. He is an Exclusive Buyer’s Agent, and he belongs to the National Association of Exclusive Buyer Agents as an active member. This means he does not have any listings within his office. He is there to guard and fend for the interests of the buyer and only the buyer. He has access to every MLS listing, all foreclosures, and all for sale by owner properties as an Exclusive Buyer Agent.
Home buyers who have used Rich’s services before have stated that his work was above and beyond what they expected to receive from a buyer’s agent. The buyers have loved him and boasted about their home buying experiences.
When home buyers are buying a new home, using an Exclusive Buyer Agent as their buyer representation is a exceptional idea. A lot of Exclusive Buyer Agents have hidden skills and previous professional experience that contributes to their ability to help buyers.
Top 6 FInancing Options For First Time Home Buyers
Where do first time home buyers go for financing? First time home buyers have many choices for financing.
A down payment of 3% minimum is normally required to get financing in today’s economy. If a buyer’s income has decreased over the past 2 years or they have insufficient credit scores they may not be approved for financing even if they have 20+% as a down payment.
The good news is that most states offer educational courses that are low-cost or even free! They are designed to educate the buyer on options for down payment assistance and basic financing choices first time home buyers. A buyer’s agent will have enough knowledge of these programs to point a buyer in the right direction .
Low-income buying programs such as Fannie Mae, Freddie Mac, HUD, FHA, and RHA are also available.
Fannie Mae stands for Federal National Mortgage Assistance. Congress developed this program in 1938. The goal of Fannie Mae is to offer financial services and options to low- and mid-income households who do not have other ways to qualify for home purchase .
Freddie Mac is the Federal Home Loan Mortgage Corporation. In order to sustain the money needed for mortgage lenders, Congress chartered Freddie Mac in 1970. Residential mortgage loans are bought by Freddie Mac and resold to investors. By doing this, Freddie Mac increases the availability and affordability of loans.
HUD is the US Department of Housing and Urban Development,. By creating more stable communities and affordable housing, they believe the rate of homeownership will raise . Their Good Neighbor Next Door program gives teachers, firefighters, emergency responders, and law enforcement workers a 50% discount of the listed price of a home. Several agencies are part of HUD, and they assist families who have lower incomes to purchase or renovate homes.
There are buyer’s agents who specifically work with buyers of HUD homes. HUD encourages buyer’s to use exclusive buyer agents when looking for a new home. “If you want someone to represent only your interests, consider hiring an “exclusive buyer’s agent,” who will be working for you,” this quote came from HUD in their In Shopping For Your Home Loan - HUD’s Settlement Cost Booklet.
The FHA insured loan is a Federal Housing Administration mortage insurance backed loan that has been afforded by FHA-approved lenders. This type of home loan is considered federal assistance.
Over time they have helped Americans who have lower incomes to obtain loans to buy a home they would not be able to afford without the borrowed money. During the Great Depression in the 1930s, this program was created as a form of substantial insurance fir the high-rate of foreclosures and defaults. Presently, it is used to assist people who are not able to afford traditional down payments and do not qualify for private mortgage insurance.
The RHA (Rural Housing Authority) makes direct loans to buyers, provides grants, and guarantee regular commercial loans for home buyers in rural areas. This program is a part of the USDA Rural Development program as an effort to create a more desirable and sustainable rural America.
It is nearly impossible to list all of the first time home buyer financing choices! Buyers should never go through the home buying process without a qualified professional, like a buyer’s agent, to direct them and provide them with knowledge about their options. Buyer’s can find a buyer’s agent in their area who offers free consultations.
Top 6 FInancing Options For First Time Home Buyers
Where do first time home buyers go for financing? First time home buyers have many choices for financing.
A down payment of 3% minimum is normally required to get financing in today’s economy. If a buyer’s income has decreased over the past 2 years or they have insufficient credit scores they may not be approved for financing even if they have 20+% as a down payment.
The good news is that most states offer educational courses that are low-cost or even free! They are designed to educate the buyer on options for down payment assistance and basic financing choices first time home buyers. A buyer’s agent will have enough knowledge of these programs to point a buyer in the right direction .
Low-income buying programs such as Fannie Mae, Freddie Mac, HUD, FHA, and RHA are also available.
Fannie Mae stands for Federal National Mortgage Assistance. Congress developed this program in 1938. The goal of Fannie Mae is to offer financial services and options to low- and mid-income households who do not have other ways to qualify for home purchase .
Freddie Mac is the Federal Home Loan Mortgage Corporation. In order to sustain the money needed for mortgage lenders, Congress chartered Freddie Mac in 1970. Residential mortgage loans are bought by Freddie Mac and resold to investors. By doing this, Freddie Mac increases the availability and affordability of loans.
HUD is the US Department of Housing and Urban Development,. By creating more stable communities and affordable housing, they believe the rate of homeownership will raise . Their Good Neighbor Next Door program gives teachers, firefighters, emergency responders, and law enforcement workers a 50% discount of the listed price of a home. Several agencies are part of HUD, and they assist families who have lower incomes to purchase or renovate homes.
There are buyer’s agents who specifically work with buyers of HUD homes. HUD encourages buyer’s to use exclusive buyer agents when looking for a new home. “If you want someone to represent only your interests, consider hiring an “exclusive buyer’s agent,” who will be working for you,” this quote came from HUD in their In Shopping For Your Home Loan - HUD’s Settlement Cost Booklet.
The FHA insured loan is a Federal Housing Administration mortage insurance backed loan that has been afforded by FHA-approved lenders. This type of home loan is considered federal assistance.
Over time they have helped Americans who have lower incomes to obtain loans to buy a home they would not be able to afford without the borrowed money. During the Great Depression in the 1930s, this program was created as a form of substantial insurance fir the high-rate of foreclosures and defaults. Presently, it is used to assist people who are not able to afford traditional down payments and do not qualify for private mortgage insurance.
The RHA (Rural Housing Authority) makes direct loans to buyers, provides grants, and guarantee regular commercial loans for home buyers in rural areas. This program is a part of the USDA Rural Development program as an effort to create a more desirable and sustainable rural America.
It is nearly impossible to list all of the first time home buyer financing choices! Buyers should never go through the home buying process without a qualified professional, like a buyer’s agent, to direct them and provide them with knowledge about their options. Buyer’s can find a buyer’s agent in their area who offers free consultations.