Patty Manzi's Tri-Valley Real Estate Blog

With all that has been going on the real estate market over the last few years, it is more important than ever to make sure the agent you are working with is an experienced, ethical agent connected with a brokerage that supports their agents with the same values. 

I was recently researching listings in Dublin for a listing I have coming on the market.  I wanted to preview a comparable home in the neighborhood that was listed for substantially below the fair market of the area.  I called the listing agent – I will call him Agent X – to inquire about the price and to make an appointment to view the home as there were no photos posted on the MLS listing.  The agent informed me the house was priced ‘competitively’ to stimualate immediate interest (aka multiple offers).  Agent X also stated that I wouldnt be able to go in and preview the home until mid-April because there is a tenant in the property and the tenant did not know, nor had they been advised the home was being sold.  This home was also going to be a short sale, but the bank didnt know that yet either.  I asked about the condition of the property, appliances, decor, flooring  and to my my shock and horror the agent admitted he had listed the home without previewing it first and didnt know the property condition! 

I think I must have said “WHAT?”  a little too loudly into the phone as Agent X seemed in a real hurry to end the conversation.  Or maybe he realized the implications of what he had just told me and wanted to get rid of me before I fired off questions about his integrity as a real estate professional. 

How can an agent properly advise a seller on the price of a home without seeing the condition of the home?  The simple answer is they can’t!  What the seller most likely does not realize is that if they get an offer for the list price of this home and proceed with the short sale, the bank will get an appraisal and determine the fair market value of this home.  The bank will then counter the buyer’s offer to bring the price up to the fair market value.  Unfortuntely this may be months into the transaction and the buyer may walk away at that point leaving the seller to put the home back on the market and start the process again.  The agent is putting the entire transaction in jeapardy by not properly pricing the home in the first place. 

The first form a seller should be presented with when hiring an agent is a Disclosure Regarding Real Estate Agency Relationships (CAR Form AD).  In this disclosure it clearly states the sellers agent has a “fiduciary duty of the utmost care, integrity, honesty and loyalty in dealings with the Seller.”  It also states the agent will use “dilient exercise of reasonable skill and care of performance of the agents duties”, and “A duty of honest and fair dealing in good faith”. 

It is my opinion that in this case the agent is violating the basic fundamental duties to the seller and it reflects badly on the industry as a whole.   

If you are a first-time home-buyer, or a buyer who hasn’t purchased a home in the last 10 years or more, here are some basic guidelines of what to expect during the buying process.

• Find a Realtor® you can trust.  The first step in the home buying process is to find an experienced Realtor® that you can trust, who has a team of professionals in place.  This will help to ensure  that your needs are met professionally and represented throughout the entire process of buying your home.  Ask for, and check references.
• Get Pre-Approved for a Loan.  This is a very important step.  By doing this before looking for a home, you’ll save time, energy, and frustration.  You will know exactly how much home you can afford.
• Look for your dream home.  The next step is to look a various homes.  A good rule of thumb is  to look at no more than 5 houses each time you go out to tour homes, more than that can be overwhelming.  Your agent can give you printouts from the Multiple Listing Service (MLS) with details on the homes you see.  Take notes on all the properties so you can remember later what features you liked or disliked about the homes.  Remember to take notes on the neighborhood as well.
• Your offer.  Be Careful ~ this is a BIG step!  When you find your dream home, you should be prepared to present a competitive offer immediately.  Your agent must  do thorough research and be able to back up your offer with solid data supporting the price and terms  that you choose.
• The Contract.  You’re starting to jog now….When the seller accepts your contract to purchase, you are ‘in escrow’. Your Realtor®, and you, will work as a team to make sure every detail is handled accurately and immediately so the escrow can close properly, and on-time.
• Inspections.  You’re on the “HOME” Stretch!  Inspections are performed to ensure you know everything you can about the home you are buying.  Contract details are further performed and negotiated, and when all tasks are complete – you head to closing!
• Signing the Loan Documents.  Finalizing the Lender’s commitment.  Prior to the closing, you, your lender, your agent, and your title representative will sit down with you to sign your loan documents at the title company.  At this time you will bring your down-payment/closing funds.  After the signing the  lender will send their funds to complete the transaction. 
• Now it’s YOURS!  Then next Step will be into your new home.  After the Deed is recorded, you can pick up your keys and move into your new ‘Home Sweet Home’!

Sound too easy?  Keep in mind that no two home purchases are identical, they all have their own unique set of circumstances and conditions that need to be addressed.  And, yes,  sometimes problems do arise.  Having a professional team in place can help to ensure that all the issues are dealt with in a professional and timely manner.  This experience should be exciting and enjoyable, as well as get you the perfect home with the least amount of hassle!

I sometimes  have people ask why they need a real estate agent to assist them with buying a home.  Here is my answer.

A REALTOR® brings a wealth of knowledge and experience to the business of buying a home.  In fact, a licensed real estate professional provides much more than the service of helping you find the home of your dreams.  Realtors® are not just sales agents, they are expert negotiators and superb navigators around the local neighborhood.  They are members of the National Association of Realtors® (NAR), and must abide by a Code of Ethics and Standards of Practice enforced by the NAR.  A professional Realtor® is your best resource when preparing to buy a home.

Here are just a few more reasons:

• Working with a Realtor® can save you endless amounts of time, money, and frustration
• An experienced Realtor® will know the housing market in the area and can help you avoid many a ’ wild goose chase’.
• A Realtor® can help you with ANY house, even if it is listed elsewhere, or is being sold by the owner directly.
• Realtors® often know the reputation of the best lenders in the area.  This is essential when helping you get pre-approved for a loan, discussing down payments, closing costs, and monthly payment options.
• A Realtor® is an excellent source for general information about the community, specific information about schools, churches, shopping, transportation, plus tips on house inspections and pricing.
• A Realtor® is experienced at presenting your offer to the homeowner and can help you through the process of negotiating the best deal.  They bring objectivity to the buying transaction, and can point out advantages and disadvantages of a particular property.

And the best thing is that all of  this help normally won’t cost you a cent!  Generally, the seller pays the commission to the Realtors®.  However, as a Realtor®, that doesn’t affect our dedication or the spirit of teamwork that is put into helping you find and buy the home of your dreams. 

This is just a first in a series of  blog’s about home buying, check back tomorrow for more….