Tip 6 – Select Your REALTOR® Carefully –
This series of essential tips for Arizona home buyers are designed to help you through the home buying process – a road map to follow while seeking to buy homes for sale in Arizona to ensure a smooth transaction – and, most importantly, a rewarding home ownership experience.
No one wants to pay more than a home is worth unknowingly. But that doesn't mean you won't be willing to pay more than the asking price for the home when it is perfect for you. That is the buyer's decision. But it is important for the buyer to know how much the home is worth to OTHER buyers. You need to go into negotiations with fully informed and with your eyes open.
It is also important to know all the other factors about the home, the neighborhood, local schools, safety issues, businesses moving in or out, tax rates, planned tax increases and so much more.
What to expect from your REALTOR® as your Buyer's Agent
So who do you rely upon to tell you where to look to do your own investigation? - Your trusted REALTOR®, of course. A professional Real Estate agent should keep their ego in check and not represent themselves as the source of the information, but instead be the source of the source of the information. The agent has a duty to disclose everything the agent knows about the property and the area and then direct the buyer to the expert source of the information so the buyer can do their own due diligence. The first place to look for general home buyer information before looking for an Arizona home to buy is the Arizona Buyer Advisory published by the Arizona Association of REALTORS®.
Working with a real estate agent who understands market values in the area is very important, for the buyer to avoid unwittingly overpaying for the house they want to buy. If the buyer is getting a loan and has limited reserves, it is critical the buyer understand how much additional down payment the buyer may have to make in the event the appraisal comes in below the sales price and the seller will not agree to take less than the contracted sales amount.
A professional real estate buyer's agent will give the buyer closing costs projections based upon the contract sales price and another at the current market value price so the buyer can decide the risk of loss and potential differential buyer costs between fair market value and the contracted sales price.
Sellers and banks may not be flexible should you have to ask for a price reduction because the appraisal came in lower than the negotiated sales price.
This isn't going to happen, but let's say real estate contracts were written that the buyer would have to agree to pay the appraised value if it came in higher than the contracted sales price? Now you understand the seller's position.
Having a professional REALTOR® guide and advise you will make the difference between getting the perfect home and making a wise purchase decision rather buying a home you soon wish belonged to someone else and has become your worse nightmare.
STAYED TUNED - Anything in big doses is hard to digest. Instead of blasting you with all home buyer tips, you are going to receive my recommendations in small bites…
So this is the sixth installment. If you are buying an Arizona home now and want the complete series of tips at once, email me and it will be sent on its way to you. Otherwise, my blog will eventually include all home buyer essential tips. Continue to Buyer Tip 7.
Author: Sam Elam, Arizona Associate Broker, CRS, GRI, e-PRO, SFR
Berkshire Hathaway HomeServices Arizona Properties
Contact Sam to discuss your Arizona home purchase plans and schedule an appointment to see how he can help make your plans become a reality.