Keller Williams Saginaw

Home Buyers

Steps to Buying

The first step to buying a new home is to understand legally who the real estate agent represents. For this, you need to understand the concept of agency.

Understanding Agency

In the traditional brokerage system, all the real estate agents are on the seller's side of the transaction. Under this system, all real estate brokers and their agents (including the agent who sells you the home) are agents for the sellers and have a duty to represent the seller's best interests, including:

Negotiate for the best price possible, and
Structure the transaction to the Seller's advantage.

Buyer Agency Brokerage System

Under the buyer agency brokerage system, the selling real estate broker (the agent who sells you the home) is the agent for the buyer and has a duty to represent the buyer's best interest, including:

Negotiate for the best price possible, and
Structure the transaction to the buyer's advantage.

Dual Agency Relationship

A dual agency relationship results when the buyer-client wishes to purchase property that is listed with the same company (an in-house listing). The broker/salesperson becomes a mediator for both buyers and sellers. In this case, the broker/salesperson cannot disclose:

Price seller is willing to accept
Price buyer is willing to pay
Personal confidences that may put one party at a disadvantage.

Designated Agency

A buyer or a seller with a designated agency agreement is represented only by agents specifically named in the agreement.

The named "designated agent" acts solely on behalf of his or her client
Eliminates dual agency in most instances
Keller Williams Realty practices designated agency

Agency Disclosure Form

The agency disclosure form is signed at first meeting. The form explains each of the following terms and requires that you choose one.

Seller's Agent
Buyer's Agent
Dual Agent
Transaction Coordinator
None of the above.

More . . .

Discuss what housing needs exist and your wish-list
Compile list of available properties which may suit your needs in your price range.
Schedule appointment to view properties.
Write purchase agreement (offer) on selected property. An earnest money deposit of 1% should accompany the offer.
The purchase agreement will be presented to seller (typically by listing agent for property) and price and terms will be negotiated.
Once an offer is accepted by all parties the buyer has a 10 day opportunity to conduct inspections.
Buyer makes formal mortgage application within first 5-7 days.
Buyer may choose to have an attorney review documents prior to closing.
Closing generally occurs 30 - 45 days after the formal mortgage application.
Possession of the property or occupancy date is negotiated as part of the purchase agreement

Top 10 Signs It's Time To Own Your Own Home

10.	You're ready to stop paying your landlord's mortgage payment, and start building wealth of your own.
9.	You could use the property tax and mortgage interest deductions.
8.	You want a vested interest in your community.
7.	It’s mid-August and you can no longer tolerate waiting for your landlord to send someone to fix your air conditioner.
6.	You are working at a job where you won’t leave the country every other year.
5.	You want to provide your family with a sense of stability and plant roots.
4.	There are more than twice as many people as bedrooms in your current residence.
3.	You want to paint the walls of your bedroom any color you please.
2.	You are tired of saving all your quarters for the laundromat.
1.	When you say you are "going home," you want to really mean it!