Frisco TX First Time Home Buyers –  Should you use a Realtor(R) when buying your first time home (Part 6)

by Mike Yeo on October 10, 2010

Frisco TX First Time Home Buyers

If you missed the previous articles prior to this:

Part 1 – Your First Steps to Homeownership
Part 2 – Difference between Pre-Qualification and Pre-Approval and how to strategize a better negotiation
Part 3 – What makes up a house payment in Frisco TX
Part 4 – How much funds are needed to buy a house in Frisco TX
Part 5 – Setting yourself for real estate success with tools you need

In this part, you will read about:

Frisco TX First Time Home Buyer Series – Should you use a Realtor(R) when buying your first time home? (Part 6)

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Begin I begin to share my thoughts, I would like to make a few disclosures:

(1) I am a licensed TX broker | Realtor(R).

(2) I only earn a paycheck when my clients close on a property: buying or selling.

(3) Other activities such as showing homes, counseling sessions and showing up for listing appointments do not net me a paycheck.

(4) The opinions expressed below may sound biased because it comes from a Realtor(R) to discuss if you should use one or not. Handle with care.

Your real estate agent who represents you in your real estate transaction is more Loreena Yeo - Realtor | TX Real Estate Brokerthan just a “salesperson” to you. He/She becomes your trusted advisor and confidant in one of your most expensive purchases. Hence, you better understand the value of one. Essentially there are 2 agents in a real estate transaction. The listing agent represents the Seller and the buyer’s agent represents you – the first time home buyer. You or the Seller do not need representation if you so choose. However, if you are surfing the internet on the MLS, chances are very strong that the Seller had already armed himself/ herself with a listing agent to represent his/ her interests in selling the property.

There are some serious considerations when considering hiring a buyer’s agent to represent you in your first time home purchase.

(1) Real Estate is a complex transaction

There are parts of real estate pieces that make an entire transaction successful. Unless you are very familiar with real estate law in Texas or can understand the responsibilities and specific performances of buyers and sellers in a real estate transaction, working with a real estate agent can help you educate your role in your home buying process.

By Texas real estate law, a real estate agent represents the Seller during the sale unless you sign a Buyer’s Representation agreement. In the Buyer’s Representation agreement, it specifics a time in which this buyer/ agent relationship lasts. It has a start and an end date. Anything that you share with your buyer’s agent should remain confidential unless your agent specifically seek your permission to share the information with the Sellers to help assist you in your transaction.

In my experience, when Sellers are present, or Buyers are present, they constantly unconsciously volunteer information that could potentially set themselves back in a real estate negotiation. A smart real estate agent can pick up on things while buyers and sellers only think they are having a “friendly” conversation.

Also, buyers and sellers hone on the sales price in a real estate transaction. However, terms of the transaction could also potentially affect the transaction. If a listing agent is there to protect the Seller’s interests to specific datelines and performances of the contract, your buyer’s agent should represent your interests also.

(2) Your agent should be non-emotional third-party to the transaction

During the home buying process, emotions are high for first time home buyers. Emotions are also high for home sellers. Hence, having a third-party, non-emotional real estate agent can help focus you back to your first time home buying goals.

As an example: During a multiple offer situation, as humans, we naturally want to win. Also, when we know that there are many interests in the property, it could make a buyer lose sight during the quest of winning the multiple offer negotiation. It is almost guaranteed that a buyer more emotional than he/she should be. If you have shared your initial goals with your buyer’s agent, the agent can help stir you back and give you objective guidance in which way you should or should not act.

(3) Your agent can represent you in new home sales too

It is often mis-informed that real estate buyer agency is not needed in new home sales. You could go into the transaction un-represented. However, is that in your best interests though? The salesperson that sits in the model homes are salespersons hired by the builder to sell homes. They represent the builder’s/ seller’s interests. So, should your interests be represented as well?

(4) Knowing what to expect

An experienced real estate agent can share with you what are “expected” in a real estate transaction so that you would not be taken advantage of. Even before you write an offer, the experienced agent can share with you if your budget would suit the locations you are interested in.

As examples, a Seller comes back to counter on your earnest money amount, or a Seller comes back to counter on your buyer’s financing approval, having someone to watch your interests as well as knowing what is common in the industry can help you feel more comfortable when stepping on unchartered territories.

In some of my previous posts, I may have mentioned that real estate is NOT rocket science. It is not when every step of the way goes smoothly. In order for it to go smoothly, work with an experienced real estate agent.

An experienced real estate agent is worth his/ her weight in gold. Working with someone who would protect your interests and minimize a roller coaster of emotions that you are about to endure.

3:16 team REALTY represents first time home buyers in the greater Frisco TX areas. Call today to see how 3:16 team REALTY can specifically help you in your unique situation.

Satisfied client testimonials:

Mariana Lombard, First time home buyer in The Colony, Texas

“I worked with Loreena long enough to know that she is a professional who knows what she is doing. She gave us great advices on how to choose our first home. She kept in touch and on top of things all the time, she made our home buying process a lot easier. She is great to work with and I would highly recommend her to my friends.”

Jag Periasamy, First time home buyer in Allen Texas

“My wife and I, found Loreena through her blogs on ActiveRain. Her thoughts on home affordability, sensible home financing strategies, thorough market analysis and contract negotiations, made us avid readers and faithful followers of her blog. So when it was time to find our first home, she was the obvious choice to represent us as our Realtor. From the very first meeting, Loreena has always been “the professional” -always punctual, prepared and efficient. Being first time home buyers, we are ever grateful for her helpful insights about home financing and handling our first major debt – the mortgage – with extra emphasis on how to get debt free as soon as possible. She helped us find a home most suited to our needs, expertly negotiated our contract and helped us buy our dream home. I would definitely recommend Loreena for all your real estate needs!”

Hardik Patni, First time home buyer in Frisco TX

We worked with few Realtors while looking for a house, and what we noticed is that there is no personal touch in any of them. They treat this as a job, and so they didn’t really care for your needs.

And so we were desperate to find someone who will listen to our unique needs and try to address them rather than just bombarding us with the same style houses over and over. And thats how we found Loreena’s web-site. I noticed that her web-site had good and useful information, and so decided to call her.

I think that was the best decision we made for our house. She understood our requirements and started showing houses according to our requirements. And so we knew that we found a right agent finally…But key was that whether she can carry this forward right till the end..

Our case was complex as I was relatively new in this country. But she handled all the hiccups very professionally and just because of her help at various levels, we ended up in a house otherwise we didn’t really see us having a house at least till next year…

Thanks Loreena for all your help and we look forward to seeing you again when we buy our next house.

Articles in the Frisco Texas First Time Home Buyer series:

Related Articles:

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Systematic market approach to selling your home – an intentionally unique proposal that most real estate agents do not use. Find out why it is our differentiator and how past clients are on their way to the closing table with this proposition to home selling.

Call Loreena Today (214) 783-2210

Contact:
Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY).
Frisco TX First Time Home Buyers – Should you use a Realtor when buying your first time home (Part 6).

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