Buyer Overview

FIRST THINGS FIRST

Buyer to agent: "So, there is this house that grabbed my attention. I wasn't even looking for a house. I want to see it. Can you get me in? ...What do you mean, am I pre-approved. Can't I just see it? ... What do you mean I have to sign a compensation agreement? I just want to see if I like it and then I'll do what I need to do."

Here is why the conversation goes this way:

• You can't put in an offer on a home without a pre-approval or proof of funds.

Offers must be accompanied by a proof of funds so let's back up from there. What if we were to wait to see if you like it before we ask for pre-approval? Here is the scenario: Buyer wants to see a house. The agent calls the showing service, puts in the request and waits for confirmation. The receiving agent checks with the seller to makes sure the time works. It does. The message goes back again and your agent confirms and makes print-outs of the listing and gets in the car. The homeowner tidies up, gathers the kids, the dog, and transports them to another location and them brings them back when the showing is over. Buyer liked the house, but they weren't qualified. They can't put in an offer anyway and, these days, the offers were due and the home is sold. A lot of energy is expended with no one realizing any benefit.

So how do I get that?

If you plan on obtaining a mortgage, contact a local mortgage broker. Banks and online sources tend to be less efficient, less communicative, and often prove to be more expensive for the buyer. We encourage our buyers to reach out to people we can contact without a call center and will respond during the evening and weekends when we need them to prepare a new pre-approval or answer a question. We have several great options in our area: Premium Mortgage, Homestead Funding, and First Priority. In a quick search, you will find several local agents and you will get them when you call. They can usually get you a pre-approval the day you call.

If you plan on paying cash, ask your bank or financial officer to write you a letter stating you have $xx.xx funds available for purchase.

We've had individuals exercise other options such as borrowing against their retirement, obtaining a home equity on their home to purchase another, or use their investments to support they sale. All of these possibilities still require a letter or statement that can accompany your offer.

What is with this new buyer commission agreement?

Realty USA, NYS, and our Local Board of Realtors have responded to recent policy changes. As of August 17, 2024, ALL agents are required to present representation agreements and negotiate compensation BEFORE showing any home. We have been accustomed to the seller taking care of buyer compensation. New rulings have brought about this shift. Sellers may still offer commission to the buyer agent but we can no longer assume that this will happen.

Check out CNN news report on this major change:
The NAR settlement comes into effect today: Here's what changing and why | CNN Business