by Nelson Vianna - FINDING THE HOME OF YOUR DREAMS

FINDING THE HOME OF YOUR DREAMS

by Nelson Vianna

Table Of Contents

Introduction

How Real Estate Agents Help Home Buyers

Owning Vs. Renting

13 Steps To Buying

Buyer’s Mistakes

Preparing To Be Approved

Shopping For Loan

Loan Programs For Buyers

Buyers' Needs And Desires

10. Real Estate Problems

11. Searching For The Right Home

12. Negotiation Do’s And Don'ts

13. What To Know About Home Inspections

14. The Closing Process

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15. Organizing Your Move

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16. Conclusion

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Foreword

When Nelson reached out to us to write an introduction to his book, we couldn’t say yes faster. Nelson may not have been the first agent we talked to, but he was certainly the last. About three to four years ago, my wife and I decided to pursue our dream of moving to the South Bay of Los Angeles once our kids move out of the house. Our son had already gone to College and our daugther would be next in a couple of years. We wanted to start a new chapter in our lives. We began looking at the internet and later called some agents from their ads, as we progressed with the idea. We told the real estate agents we spoke to about our situation, and that we would not be doing anything for some time as we still had to sell our house up in Danville before this whole plan become reality. They would e-mail us the info we’ve requested, but that was the last we heard from them, at least until we called Nelson. I could tell Nelson was a go-getter from our telephone conversations. Then, he did the unthinkable. After e-mail the info to us, he followed up with a phone call. I must admit, we were really impressed with him not only for his phone calls, but because he never rushed us, and seemed to understand that it would be some time before we actually purchased something. He never called too often, but always stayed in touch and offered his services. In a few months, we decided it was time to make a trip to Los Angeles to meet Nelson to look at some properties. He gladly selected several properties that we’d shown interest in, for us to preview. It was a great experience and he never push us on v

making any decisions.

Over time we made several more trips to preview properties and even asked our kids to come along so we could get the entire family involved in the process. Nelson was a pleasure to work with and we kept in touch. Soon, our daughter went to college and we became empty nesters. Time to put our house in the market. Since we were Up North we got a local real estate agent to help us sell the house but, we were in contact with Nelson, who gave us a lot of good advice on how to prepare the house for sale, even though we had a local agent. The house sold faster than we anticipated and quickly we had to pick a house or have some arrangement to move out as our house was closing escrow shortly. We packed our things and Nelson gave us some tips on storage facilities in the South Bay. Also, he help us with a local temporary housing facility. As soon as we settled we started looking for a house but the weeks started passing and we couldn’t find the place that we wanted. Again, Nelson suggested that we rent a place, and that was easier to find and a better arrangement than a temporary housing facility. In a few months Nelson found us the perfect house, exactly what we were looking for, and we successfully made an offer and closed on the purchase. Things worked out just right with Nelson’s help. Because of simple little things like follow-up phone calls, patience, and eagerness to help his clients, Nelson was the one that help us with the relocation, with the temporary local rental, and with purchasing our dream home in the South Bay.

We were totally amazed at the professionalism, expertise, and kindness we were shown from start to finish. Nelson will be our agent for as long as we need one, and that does not happen often in this industry.

Bill and Gina S.

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About

Nelson moved to the South Bay area of Los Angeles right after he finished college. As a teenager, Nelson had aspirations of being an architect, but didn't happen that way. Never in a million years did he think he’d stumble into the real estate industry, but you can’t always predict where or when you’ll discover what you’re meant to do in life. Nelson was taught at a young age that if you want something in life, you have to work for it. So that’s what he did, and he worked very hard. Nelson always been involved in sales and customer service businesses. Early in life he saved enough for buying his first property and that became a passion for him. But he never wavered in his resolve to become the best version of himself. Nelson kept looking for, finding and buying good properties, and became a real estate investor. Nelson’s passion always was to help people and with his experience as a real estate investor he them decided to become a real estate broker and help other people to realize the American dream of owning their own home and investing in real estate. As his career advanced, Nelson found his stride working with residential real estate and investment properties. He's become an expert in buying and selling single family homes, luxury homes and investment properties. Throughout his career, Nelson has earned numerous designations from the National Association of Realtors (NAR), including:

· CRS - Certified Residential Specialist · SRS - Seller Representative Specialist · ABR - Accredited Buyer Representative · PSA - Pricing Strategy Advisor

· CNE - Certified Negotiator Expert · GRI - Graduated Realty Institute · CIPS - Certified International Property Specialist · SRES - Senior Real Estate Specialist · RSPS - Resort and Second-Home Property Specialist He's currently a member of several Real Estate organizations, including:

· ILHM - Institute of Luxury Home Marketing · PLMC - Premier Luxury Marketing Consultants · NAR - National Association of Realtors · CAR - California Association of Realtors . SBAOR – South Bay Association of Realtors · REBAC - Real Estate Agents Buyer's Council

Nelson is a long time resident of the South Bay area. In his free time he loves to play golf, walking on the beach with his wife and appreciate the beautiful Southern California sunsets, enjoy the good company of friends and relatives, check the local eateries and he and his wife are avid travelers.

Reviews

Here’s some of the clients we’ve helped buying a property recently said about working with us: "Nelson was very helpful. He went above and beyond to get me the house that I really wanted. He kept me in the loop on all the negotiations between him and the seller and always gave me good advice. I highly recommend him to anyone looking to buy or sell a house.." — Monica D "My wife and I are first time buyers and Nelson helped us purchase our first home. Working with him and his team has been such a pleasure. He'd always take time to explain everything to us clearly - entertained all our "newbie questions". His network of business contacts provided us options for great professionals for mortgage, inspections, and other services. He was always willing to meet us for home viewings even on weekends. He's been great to work with - and always serves us with what I feel is the highest level of professionalism and integrity. I will definitely work with him the next time I need to buy or sell a home." — Alan O "Nelson walked us through every step of purchasing a home. It was a pleasure working with him. I had to go out of the country for couple of weeks after we entered the contract. Nelson made my home buying and my vacation as stress free as possible. He worked with me via phone calls, emails and texts while I was on the other side of the globe. Nelson answered all my texts and emails while I was enjoying my vacation. He goes above and beyond the buying/selling process to help his clients. Nelson is the best realtor I know of and I will recommend him to all of my xi

friends." — Steve M

"Nelson was a wonderful realtor through every step of our home-buying process. Firstly, we are from out-of-state, naturally we had very little knowledge of the area we were interested in. Nelson was extremely knowledgeable of the area and understood what we were looking for in a home right away. He was also very patient, as the process from start to finish took about two years. During that time, Nelson continued to keep in touch and informed us of new homes on the market. Nelson is quick to respond and easy to get in touch with. We greatly appreciate how honest Nelson was about all properties we visited, and we truly appreciate he was never pushy or aggressive in any kind of decision making, always tried to help with suggestions. Nelson is genuine, kind, and generous person who really has his client's best interests in mind and will go above and beyond to make sure they are comfortable with every part of the process. We were so fortunate to have Nelson as our realtor and it was great pleasure to work with him. We highly recommend Nelson Vianna to anyone looking for a wonderful "I usually don't do reviews but I feel it absolutely necessarily where Nelson is concerned. We most certainly did not have an easy time getting our house because of financial issues and other things beyond our control. Nelson was the most patient diligent real estate agent I've ever worked with. He communicated with us throughout the process and let us know what was going on every time anything happened. We love our house so much and I don't plan on moving again but if I ever do, I would not hesitate to call him again. I recommend him to all of my friends, and I hope you consider him because he will always have your best interest in mind." — Kevin M realtor." —Kim S

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"My family and I relocated from Northern California to Southern California and had a great experience working with Nelson. He was extremely responsive, and available for our phone calls, endless questions, and concerns involved with significant relocations. With our extremely hectic schedules, we appreciated his willingness to show us homes even when we invited our extended family members to join us and give opinions. Most realtors are professional and knowledgeable, but we felt Nelson was always looking up for us, which made us feel that he was truly acting on the best interest of his clients and not just trying to "close the deal". We never felt pressured. The lenders that he works with were also great. Nelson was phenomenal and we plan to work with him in any of our future real estate endeavors and highly recommend that our friends, family, neighbors, etc., do the same." — Aaron & Ana J "The LA Execs Team could not have been more helpful in the process of buying a new house. We were a remote buyer, which can make things more difficult. But Nelson made things as smooth as could be. From taking their weekends to provide us with showings to using their expert knowledge of the area to frame each home correctly, we were very confident that the process would be done right. A home that started out of reach for us became a reality thanks to the skills and perseverance of Nelson. We cannot recommend them more to any home buyers or sellers looking for a top notch experience." — Emilie D "Nelson is the best! He listened carefully to our comments as he showed us all of the available homes in the South Bay area that met our criteria. As he showed us more places, we narrowed our search until we found the perfect home. Nelson was so patient with us, and we really appreciated his calm, "no pressure" manner! Once we found our home, Nelson did a tremendous

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job guiding us through the escrow process. He made it so easy for us! Nelson was able to work directly with our lender so that we didn't have to do any of the hard work. What a wonderful experience! We are so grateful we found Nelson at the beginning of our home search. We love our new home!" — Tom W "The LA Execs Team performed with the highest level of skill and professionalism. We were always treated like we were their most important clients even though they have many. Our concerns were addressed quickly and thoroughly. Nelson kept us informed and up to date at every phase of the process of purchasing our home. His intimate knowledge of the area was great and he offered sound advice when we were at critical phases making us confident we were doing the right thing. Ultimately, the experience working with the LA Execs Team was truly a pleasure and we wouldn't hesitate for a second to work with them again." — Telma R "Nelson was a pleasure to work with. He was knowledgeable and his communication skills were excellent. I would highly recommend Nelson. He is very honest, and represents his clients, not his own self-interests, a rare find in today's market place. Fabulous transaction experience, even with minor issues the whole deal start to finish was managed beautifully." — Vickey M "My experience with Nelson was great. I couldn't have asked for a better person to show me around the South Bay area. Being from out of town, he made it so easy and pleasant. He was always in contact with me letting me know what was going on. He would email, text or call me, and the experience with him will be one I won't forget for a long time. Love my new Home! I would recommend him to anybody who is in the market to buy or sell a home. I wish you all the best Nelson!!!" --

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— Sharon E

"I am an extremely busy business-woman and required a real estate agent who was knowledgeable, committed, responsive, efficient and someone I could count on. He knew what I was looking for and did an excellent job finding the perfect home for our needs. He is truly a professional and cared about keeping us happy during the entire process. I will no doubt utilize Nelson's services for our next home. And I am one tough customer." — Dana H "Nelson is great! He didn't put any "pressure" on us at all about deciding on the right home for us. We've had agents in the past that did. He showed us numerous properties and was very patient and helpful every time! Once we found the perfect home for us, he walked us through the entire process & answered all of our questions. He was present for our signing at the escrow company. He made this experience easy for us. We will definitely use him again!" — Christa Z "Nelson was a dream to work with! Negotiated on our behalf in an extremely competitive market to ensure we were getting the house we wanted at the right price. He kept us informed throughout the process and was always available by text or phone to answer any questions we had. His professionalism and follow through were greatly appreciated. Nelson surrounds himself with a team of excellent professionals that ensures that he is able to get the job done and provide the best value to the clients he serves. He is extremely knowledgeable and has extensive working relationships within the real estate community that ensured the process went smooth. While I know we were not, I felt as if I was the only customer he was working with. I highly recommend Nelson!" —Alison M

"If you are looking for a great realtor who is willing to go the extra mile, then Nelson is your guy. He really took to heart our special needs for our new home and found us the perfect fit. He really took the time to get to know our family and was always there to help and answer questions. Because of his willingness to really understand all our unique requirements for a home and his genuine care, he was able to assist us more like a part of our family, then a realtor. His professionalism is without question and his willingness to help at any time was a breath of fresh air. I will recommend him to all my family, friends or folks who are looking to purchase a home — Chris D "Nelson has a vast knowledge of the Los Angeles South Bay and the surrounding areas. He keeps you informed on every stage of the process. When/if you call with any questions, he has the answers or gets them for you immediately. I would recommend Nelson to any and everybody." -- — Zachary S "A friend of mine referred me to Nelson when we were looking for a realtor to help us in the process of purchasing our first home. I am so thankful that we found Nelson! He could not have been more helpful throughout our entire process. From day one when I gave him our "wish list" and desired location, Nelson went to work helping us to look at as many potential options as possible. There were many times when we viewed a home that met a lot of our criteria, but for whatever reason it didn't feel right to us. Every time that happened, I expected that Nelson might be disappointed or that he might pressure us to reconsider, but that never happened. Nelson surprised and impressed me with his patience, and he continually affirmed that we were making the right decision and that we would eventually find the perfect house. He was right!!! When we finally found the perfect house, we wanted to make an offer right away, Nelson was amazing helping us negotiate the price and work

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through all of the paperwork, inspections, etc. It was an overwhelming process for us, being first time home buyers, but Nelson made it smooth and seamless and helped relieve our fears/stress when things came up. I highly recommend Nelson to anyone who is looking for an honest, hard-working, knowledgeable, efficient realtor who knows his stuff and who will help you find the best house for your situation. Huge fan!!!" — Kyle & Beth P "I was so thankful to have Nelson as my realtor. Getting into the housing market to buy my first home was really a challenging process. But Nelson made it so easy and enjoyable. His professionalism, friendliness and responsiveness made him awesome to work with. I never felt pressured into doing anything I wasn't totally sure and comfortable with. Wisely navigated me through each and every step, enabling me to find exactly what I was looking for, staying within my budget, and helping me to make the deal successful. Nelson, really knows his stuff about the real estate market. He always had my best interest in mind, suggesting other options when he thought I could find a better match. Once I found the house I wanted, Nelson worked hard with helping prepare the offer to make it as compelling as possible. I would strongly recommend Nelson to anyone looking to buy or sell house." — Michael J "Nelson recently helped us buy our first house. He made a very stressful experience a real pleasure. He was patient with our new buyer questions and anxiety, provided great insight and helped us make the best home decision possible. The thing that sold my husband on him was when Nelson said 'don't settle for the first house you see, we'll look until we find your house.' It allowed us to know he wasn't simply looking for a commission, he was invested in us. He accommodated our picky viewing schedule without issue and was always on time and in good spirits for all the showings! He has even remained available for my newbie

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homeowner questions post close. I cannot say enough about Nelson. We will use him again if we ever buy or sell, and I'd recommend him to anyone I know!" — Michelle K "I can’t say enough about Nelson – He was excellent!! I couldn’t be more thankful to have been teamed up with such an amazing realtor. There was never pressure to buy something just because…his intentions were always to find me the RIGHT house. He told me on many occasions not to settle and encouraged me when I’d get disappointed or frustrated. He was very responsive to all my calls, texts and emails, and did amazing follow-up with the other agents on the properties. He was also great with all the family and friends I had looking at homes with me. They all loved him, and he was extremely accommodating even when I had 6 adults and 2 children come to one of the showings (yikes!). His expert knowledge and attention to detail made it a pretty stress free experience for me. I never had to worry because I knew Nelson had everything covered and my best interest in mind. He truly is amazing at what he does so I felt confident saying “do what you do, this is your expertise.” He also coordinated and booked all the inspections, so I didn’t have to take off work. His inspectors much like him were super thorough and extremely detailed. I didn’t have to worry about finding all the best in the business because Nelson has the best in his team already. Thank you so much Nelson for getting me my first home and making me feel so comfortable with the process. I’ll be sending anyone I know your way for that same awesome experience." — Vanessa R "My wife and I had been looking for a house for over a year with no success. With previous agents we had been able to explain the general areas and prices of what we were looking for, but not much beyond that. Because it was our first home we didn't really have an understanding of what we REALLY wanted. Did we

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want something we could fix up? Something that was move-in ready? Perhaps the location and price was right but the size of the house wasn't. We would accompany Nelson to look at homes that seemed perfect over the internet, but in person just didn't seem to be what we wanted. Over the course of these many, many, many trips Nelson would ask questions and he really developed an understanding of what we wanted but couldn't express. Consequently, each home we would visit started getting better and better and eventually we decided on a home that was perfect for us. Thanks Nelson! Without your help we would still be looking." — Nick J "Nelson is outstanding at what he does. He is thorough, honest, patient and precise. He was always available when we needed him and made our buying experience a pleasurable one. We look forward to working with him in the future and recommending him to our family, friends and anyone we know looking to buy or sell. We can't say enough good things about him. Thank you again Nelson!" — Tonya R "If you need a trustworthy, honest and knowledgeable agent then Nelson is the one! My wife and I hired him to help us find the perfect home. He provided his honest opinion about every listing... from the area to the quality of the home. In addition, it was truly refreshing to hear and watch someone advocate and negotiate the pricing until you're pleased. Finally, Nelson will always return your phone calls and constantly maintain a strong communication to make sure you don't miss on any opportunities. We are truly pleased with our new home and are forever grateful to have Nelson on our side. Thanks Nelson!" — Don "Nelson did an awesome job helping me and my family find our perfect home. He was very knowledgeable and patient. Nelson

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was great to work with through the entire process and always put our needs first, whether it was a house we wanted to see or a question we had about it, he was always there wanting to help. I have also referred Nelson to some friends and coworkers and they all have had the same experience! He is the only realtor I will ever use." — Ivan B "Nelson is an experienced and knowledgeable realtor. He has helped my family and I purchase two new properties and sold one recently. He is professional, attentive, and a diligent worker. I would recommend him to anyone seeking to purchase or sell a home. It makes such a difference having a great realtor than just a good realtor.". — Ryan S "Nelson was there to take the stress out of home buying during one of the most stressful times of my life. I'm a single mom and I work full time as a manager of a big department at a major department store. My hours are all over the place but Nelson was always available and always accommodating. He went the extra mile to make sure I purchased a house (within my budget) in a great neighborhood with excellent schools for my daughter. I highly recommend Nelson if you are looking to buy or sell a home." — Angelica H "I have been doing business with Nelson for years now. After our first encounter in 2009 I decided that there was no other Realtor I would do business with. His honesty, persistence, and drive to find the perfect property for my family. His efforts make it seem that he is simply helping out a family member. I have referred all my friends and family to Nelson since 2009, and I will continue to do the same as long as he is in the business!!! Thanks for everything Nelson! You're a class act, as always as an amazing realtor."

— Terrance P

"Nelson Vianna was very helpful in handling our real estate experience. He was highly enthusiastic about our needs and helped us through all phases of our transactions. It took me almost 2 years to buy my first investment property but Nelson never tried to push me for buying it until I was completely satisfied. He is always ready to answer any questions you may have. His knowledge of real estate and ability to complete the process in a timely manner and his concern to make sure we were informed and satisfied really impressed us. He helped me in negotiating and come up with the correct price so that I didn't pay more than the market value. He completed the process just as we had envisioned it, and he made the process fun rather than stressful. There were no surprises. Should you need an excellent realtor, Nelson is the man and he will help you in all phases of your real estate needs." — Jack F "My wife and I moved here about 4 years ago from Arkansas. We met Nelson just out of pure luck! Nelson was very knowledgeable with the South Bay and surrounding areas. We were very specific in what we were looking for and within a certain price range. He didn't waste our time by showing us listings that were not what we were interested in, and for that I were very thankful. Since we purchased our house, Nelson still checks in with us from time to time to see how we are doing, and how we are liking the house! Since then I have recommended Nelson to several of my friends and they all have been more than satisfied with his performance. A true Professional.". — Brian D "Nelson went above and beyond to help us find our 'forever' house. He was very patient and professional even as we were quite particular about what we wanted. Nelson told us he’s a

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South bay resident for over 30 years and his knowledge of the South bay area definitely helped when trying to find us what we were seeking. Nelson made himself available at almost all times and when he was not, he contacted us back quickly. Once we were able to locate and settle on the house we wanted Nelson did an excellent job of lining up the financing and negotiating a great deal for us. I don't think we could have chosen a better 'full service' agent. We highly recommend Nelson to anyone looking to buy or sell real estate." — John R

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CHAPTER 1 Introduction

Congratulations! You are taking a big step by making a decision to learn everything about home buying before you venture out there without preparation. The difference between a dream and a goal is a “plan”. When you take the time to learn the ins and out of buying a house you’ll be ahead of most other buyers and will have a much better chance to get that dream house you want. This book will show you how to get prepared to buy a house, what to do even before you start looking at houses. You’ll learn all about the unique characteristics of the different styles of houses, what to look for when evaluating if a particular house will fit your needs and lifestyle of your family, you’ll unlock the secrets of the differentiating features that make a house perfect for you. You’ll save time, effort and money by learning what features and specific improvements to look for in a house, not wasting time with properties that don’t have the required items you’re looking for, or the potential to be easily added without major investment. This book will take you through a journey of getting you prepared to be a bonafide and competitive buyer, increasing your chances of getting the house you’ve been looking for. You’ll have a better understanding of what features are really important to you and your family, not just some shining attractions. Once you identify a good property, you’ll 2

understand how to present a winning offer and get your offer accepted. Then you’ll learn what problems to look for when inspecting the property, which items are the most important and some that are easily corrected and not so vital. You’ll glide to closing and will be ready to move to your dream house much sooner than you expected! By learning everything about home buying you have a better chance of making your best decision. Lack of knowledge about the process of buying a house and emotions can overtake good judgement and lead to problems. Relax, take a deep breath and read on. Once you are done reading this book you’ll feel ready to make a better decision on the purchase of the home you always wanted.

I hope you enjoy it!

CHAPTER 2 How Real Estate Agents Help Home Buyers

Generally, real estate agents for buyers are paid for out of the listing agent’s commission. So, I’m not looking to part you from your money. I’m giving you the benefit of experience and advice I have picked up in my career buying and selling houses and being in real estate transactions — for both sellers and buyers. Technology has changed the way homes are sought and bought today. In this “Information Era,” most buyers are first introduced to the home they eventually purchase via the Internet, through Zillow, Trulia, Yahoo! Homes, Realtor.com, and Redfin. These are the top five “Most Popular Real Estate Sites,” as derived from eBizMBA’s Rank, which is a continually updated average of each website’s Alexa Global Traffic Rank, and U.S. Traffic Rank, from both Compete and Quantcast. So that means there’s no real need for a buyer’s real estate agent, right? If a buyer can find and visit a home on the web all on their own, why involve another party? The reason to use a real estate agent is to find a home and show homes available for sale, right?

WHY HOME BUYERS NEED A REAL ESTATE AGENT

Ah, not so fast, friend. The reasons to use a real estate agent today are as valid as yesterday. The ease of online transactions and proliferation of services to assist buyers in handling their 4

own real estate transactions came recently, arising throughout the last decade. This has caused buyers to wonder if using a real estate agent is no longer necessary, or an expense that can be avoided. While doing the work yourself can save you if you buy a “For Sale By Owner” (FSBO) house and the seller agrees to reduce the price by 3% (half of what a listing agent would receive). For many, a do-it-yourself home purchase might be pricier than a real estate agent’s commission, in the long run. Besides, a buyer generally doesn’t directly pay any commission to an agent on a house purchase. On most home sales, there is a “listing agent” (the agent hired to represent the seller on the sale of the property) and a selling agent (the agent who introduces the eventual buyer into the transaction). The selling agent is often called the “buyer’s agent” because he or she is often working on the buyer’s behalf and it’s easier than explaining that the selling agent is not the listing agent but really the buyer’s agent. There are some real estate agents that market themselves as “buyer’s agents,” “exclusive buyer’s agents,” or “buyer’s representatives.” These real estate agents have chosen to make a business of finding homes for prospective buyers and handling the negotiations and transactions attendant to the purchase. These agents want to accentuate the reasons a buyer shouldn’t go directly to the listing agent when they purchase real estate. A buyer who goes directly to the listing agent and allows that agent to “manage” both sides of the transaction is dealing with an agent who has conflicting responsibilities. Their job is to get a good price for the seller, and they might not zealously represent the interests of the buyer. Those who market themselves as buyer’s agents indicate they’re only working for the buyer in a real estate transaction.

The buyer’s agent commission is always paid by the seller, with rare exceptions. In California, all real estate transactions are handled by an Escrow Company, which is a neutral party in the transaction. The Escrow Company role is to make sure that all of the documentation on the transaction is in order and then process the transaction towards a close. The sales commission is paid by the seller as one of the closing costs expenses on the seller side. The Escrow Company then disburses the commission to the selling broker representing the buyer. A maxim in real estate is, “No matter how it’s set up, the buyer always walks away with the house and the seller always walks away with 94% of the purchase price.”

MORE ACCESS TO THE REAL ESTATE MARKET

A real estate agent will have better access to the market, and a special knowledge of local conditions. The agent is a full-time liaison between sellers and buyers. An agent will have ready access to other properties listed by all other agents. Buyers’ and sellers’ agents know how to put a real estate deal together. A real estate agent will track down homes that meet your criteria, contact sellers’ agents, and secure appointments for viewing the homes. On their own, buyers have a more difficult time with these things. This is even more so on the case when a buyer is moving due to relocation or employment opportunity and engages a “buyer’s agent” to handle matters.

NEGOTIATING IS HARDER ON YOUR OWN

A real estate agent will keep the transaction “at arm’s length,” such that personalities and emotions do not become involved. Price negotiations take a special skill and understanding of the psychology of offering and counteroffering.

Agents keep the transaction dispassionate and rational. For example, a buyer might like a home despite its wood-paneled walls, shag carpet, and lurid orange kitchen. When you work with an agent, you can express your opinions on the current owner’s decorating skills and complain about how much it will cost to upgrade the home without insulting the owner. Your agent will translate that to the seller that you very much like the property, but have to to spend $$$ in decorating costs, and thus offer that much less. CONTRACTUALLY SPEAKING There are many contracts and documents involved in purchasing a house. The stack is more than an inch thick. Unless you’re a real estate lawyer, these documents will be foreign to you. Yet, they require detailed and accurate completions. Buying a property is not necessarily a “fill-in-the- blanks” transaction and a mistake, let’s say in title work, could haunt the buyer well down the line after purchase. This very situation happened. A property that sat on a double lot was put on the market. The neighbor bought it to carve off a bit of the second lot to expand his own yard. The seller in the other side then put his home on the market and it sold. Months later, through a property tax notification, it came out that in preparing new deeds for the properties, the expanded yard area was correctly in the name of the neighbor; however, the house had been transferred to the other home buyer. The new homeowner now owned both houses and the neighbor owned his expanded driveway and yard. Fortunately, they were good neighbors and settled the matter with a few signatures. A real estate agent deals regularly with these contracts, conditions, and unexpected situations, and is familiar with

which conditions should be used, when they can safely be removed, and how to use the contract to protect you.

YOU WON'T NECESSARILY SAVE MONEY

The point of not using a real estate agent would be to save money, right? Otherwise, why turn down professional assistance in finding a home to the buyers’ liking without their own effort and dealing with negotiations and the many attendant home- selling duties? However, it’s unlikely that both the buyer and the seller will reap the benefits of not paying a real estate agent commissions. It works like this: An owner selling on his own will price the house based on the sale prices of other comparable properties in the area. Many of these properties will be sold with the help of an agent; therefore, the seller profits in getting to keep the percentage of the home’s sale price that might otherwise be paid to the real estate agent (usually 6%). Buyers looking to purchase a home sold by owners without an agent may believe they can save money on the home by not having an agent involved and so look solely at FSBO houses. They might expect it and make an offer accordingly. Unless the buyer and seller agree to split the savings, they can’t both save the commission — and that’s if the listing price was not already lowered by near the commission amount to make it more market-attractive. Here’s a shortlist of the advantages that using a real estate agent can bring to your buying experience:

• Education and experience • Agents are buffers • Neighborhood knowledge • Price guidance • Market conditions information

• Professional networking • Negotiation skills and confidentiality • Handling Volumes of Paperwork • Answer Questions After Closing • Develop Relationships for Future Business

It’s extremely important to know the “ins and outs” of real estate agents before you bring one along with you to help in your search for a home, just so that you might know what to expect, and what will be expected of you.

WHO A REAL ESTATE AGENT IS

In short, a real estate agent is someone licensed by the state to list and sell real estate, including homes, multi-family properties, and commercial and industrial buildings. A REALTOR®, however, is somewhat different. A Realtor® is a member of the National Association of REALTORS®. While an agent is always a real estate agent, a real estate agent isn’t always a Realtor®. A REALTOR® abides to a “Code of Ethics” put forth by the National Association of Realtors (NAR) and also are required to be a member of the State Association of Realtors ( in California – CAR – California Association of Realtors) and in addition also required to be a member of a Local Association of Realtors. By bean a member of those associations the REALTOR® is subjected to certain rules and regulations on how to deal with the clients and with other agents as well. Real estate agents who work on behalf of the buyer are called a “selling agent” (and also are commonly called buyer’s agents). Real estate agents that represent the sellers are called a “listing agents”.

The listing agent contracts with the seller the commission that the seller will pay on the sale of the property. When a buyer’s agent brings the buyer, the listing agent splits the contracted commission with the buyer’s agent. So, commissions on a real estate transaction are, in a majority of cases, paid by the seller.

HOW TO CHOOSE THE BEST AGENT FOR YOUR NEEDS

You might feel the urge to pick the first real estate agent who appeals to or approaches you, but that’s something to avoid. Like with any professional, there are degrees of professionalism, dedication, and experience. The “wow factor” will simply wear off. Meet with prospective buyer agents before you make a choice. A good buyer’s agent will want to know whether you are loan- preapproved by a lender or bank, what kind of loan program you're approved for, and the terms of the loan you’re getting. They should spend adequate time to discover what you’re looking for in a house. They should listen as much as talk and ask questions. If the agent doesn’t broach the topic, ask for an explanation of his understanding of agency relationships and obligations to you. The law requires agents to explain whether they’ll be working for the buyer or the seller whenever they have substantive contact with a customer or prospective client. If the agent doesn’t offer you a buyer’s agency agreement, that agent is representing the seller, not the buyer. If the agent can’t explain agency concepts to you, then move to the next agent. Be sure that the agent will be showing you all listings or properties on the market that meet your requirements, not only listings that are handled in-house (that is, from his brokerage).

Buyer’s agents have the legal duty to put buyer’s needs ahead of their own. Even when an agent will be paid more for selling an in-house listing, they must inform you about other available, suitable listings and take you to see those you believe are viable prospects. A good buyer’s agent will provide a home-buying education. The listing agent will point out all the features of a home; a good buyer’s agent will point to the faults — or advise when they can be overlooked. Competent buyer’s agents help their buyers to think clearly as the home-buying process unfolds. For example, if a house is a good buy, a buyer’s agent might suggest looking past the dated bathroom and kitchen and look at the space above the garage that will make the perfect studio you desire. Likewise, a cute house with all the amenities, but with knob-and-tube wiring or a 40-year-old roof might not be worth the asking price. If you decide to buy with the intention of building an addition, the agent should advise you to check the zoning before making an offer. Some people will sign an agency agreement with the listing the agent after attending an open house. Working with a seller’s agent is a big mistake, according to an article by Amy Fontinelle of Forbes’ Investopedia. Any information you reveal will become leverage that the seller can use in a purchase negotiation. A buyer’s agent is legally required to maintain your confidentiality, disclose material facts to you, and maintain loyalty to you. These are "fiduciary" duties.

LOOK FOR PROPER CREDENTIALS

You wouldn’t trust a doctor who doesn’t have the proper credentials and licensing. Don’t trust a real estate agent who doesn’t present theirs or doesn’t have them at all. It’s easy to find

real estate agents who can take the job, but finding agents with special credentials, those who have gone that extra step to take additional classes in certain specialties of real estate sales, is worth looking into. Here are just a few credentials within real estate that you should be on the lookout for: • Accredited Buyer’s Representative (ABR): Completed additional education during representation of buyers in their transactions. • Seller Representative Specialist (SRS) Completed additional education during representation of sellers in their transactions. • Certified Residential Specialist (CRS): Completed additional training during the handling of residential real estate, such as single family homes, townhomes, condos, and multi-family properties. • Seniors Real Estate Specialist (SRES): Completed additional training for the purpose of helping both sellers and buyers 50+ years old. In order to earn these credentials a real estate agent needs to be a member of the National Association of REALTORS®, NAR, in addition, need to take specific courses on the subject of the credential, and pass on an exam in order to receive the designation. However, ensure they have credentials that are relevant to your needs, as there are many different credentials.

RESEARCH LICENSING

Your state will have a license board for all active real estate Realtors® and agents, which you can easily access. You will also be able to see their information, disciplinary actions,

complaints, or any other information that you’ll need to help influence your decision — especially since most of the information is now posted online.

GIVE THE “WHAT ELSE” TEST

A good agent will know about all the other properties for sale in the area. Also, a good agent always does their research regarding the events in the current market, and those that are out there for the taking. In short, you want an agent who’s an expert of the current market, and someone who always stays on top of things.

RESEARCH THEIR BUSINESS ACTIVITY

Learning the type of market presence that a real estate agent has is the best way to figure them out. Ideally, you’re going to want an agent who specializes in one or two real estate markets, and who understands which types of homes and amenities are available within your price range. You can unearth this information by asking them or by asking the state licensing authority if you’re not comfortable with asking the agent directly. You’re better off with an agent who’s engaged actively in one specialty, like for example residential housing. If you are buying a house you don't want an agent that specializes in commercial real estate.

GOING THE BUYER'S AGENT ROUTE

So, you’re ready to take the plunge and look for a place to call “home.” To get the most out of it, use a buyer’s agent to avoid a flurry of paperwork, stampedes of buyers competing for the same property, and other challenges.

Home buying can be exciting and exhilarating; but it can also be

complex and stressful — which is why having a pro by your side can make an enormous difference. As discussed, you’ve probably heard of buyer’s agents, seller’s agents, listing agents, and so on. You’re a buyer, so what’s a buyer’s agent? True to the name, buyer’s agents assist home buyers every step of the way; they can also save you both time and money on the road to homeownership. These real estate agents will work day and night, if you listen to the advice above and find the best one for you, to ensure all your needs and requirements are met when it comes to finding the right home for you.

WHAT BUYER'S AGENTS DO FOR YOU

Your buyer’s agent will have a vast knowledge of the current real estate market for the area, which will include neighborhood amenities and conditions, schools, neighborhood points of interest, the law, zoning issues, price trends, negotiations, taxes, financing, and insurance. Once you meet with the buyer’s agent, they’ll generally help you to determine your needs and wants when it comes to finding you a home and a neighborhood. The agent will aid you in learning about what you can afford, help you in setting a budget, provide some insight on the current conditions of the market, and explain what you should expect while shopping for a home. In addition, they will help you find a suitable level of financing. It is very important for you to get pre-approved for financing so your agent you'll be able to determine the price point of homes to present for your selection. Once you are "pre-approved" your shopping-for-a-home period begins, your agent will then be able to schedule tours of homes in which you might be interested.

They will give you insight into the floor plans, the home’s

pertinent selling points, and the overall feeling of that neighborhood. They will also give you the rundown for cultural activities, work centers, shopping centers, and schools nearby. Your agent is responsible for ensuring inspections of the homes are complete, as well as the disclosures therein. They’re also in charge of ensuring coordination of the home inspections, the termite inspection, the roof inspector, lenders, and all other professionals involved with the purchase of the home. If negotiations need to be made over the price, you won’t have to do it yourself, your buyer’s agent will do that for you, all the way to the final closing documents. They will be available whenever you have documents that you need to go through, will be there to answer any questions you might have, and will walk you through before you sign any documents.

DUAL AGENCY: THE BASICS

A “dual agency” relationship occurs when a buyer is being represented by a brokerage firm that controls the listing. Once an agent represents both the seller and the buyer within the same transaction, the situation is known as “dual agency.” In multiple states, this is illegal because of the conflicts of interest that can arise regarding the broker. All agents hold the same responsibility, which is to inform their clients of all potential risks that could arise due to conflicts of interest. Legally, agents are not allowed to work on both sides of any transaction without consent from the clients. For example, if you’re selling your home, and you don’t want an agent to be working with the buyer, it’s your right to say so in the

listing agreement. This is also true for the buyers. A buyer can get out of a buyer’s agency agreement, but only if their agent has a listing in which the buyer is interested. When it comes to dual agency, there are advantages for the seller: • Trust has already been gained with your listing agent, having your best interest in mind. • Your listing agent works with corporate relocation buyers who need to find a house quickly, and they will ensure your house will be sold for the asking price.

There are also cons when it comes to dual agency, and they are:

• You can’t be advised by your agent as thoroughly when they must act as a dual agent, because impartial facilitation is required. • Your listing agent is not allowed to negotiate the best or highest price for you if also negotiating both the best and lowest terms for the buyer. • Earning a full commission, if the opportunity arises, may tempt the agent to coerce a deal that you might not accept otherwise. • Your agent may inhibit all access to your listing through buyers with other agents. To avoid surprises or anything going wrong in general, when going with dual agency, always ensure you properly represent and clarify your full relationship with your agent.

You can do this by using an exclusive buyer agency agreement,

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