ASK Annette and Leslie with LVRG - HOME BUYING FOR VETERANS

HOME BUYING FOR VETERANS

ASK Annette and Leslie e and Leslie with LVRG

Table Of Contents

How Real Estate Agents Help Veterans Buy Homes

Owning vs. Renting

Buyers' Needs and Desires

Real Estate Horror Stories to Learn from

Searching for the Right Home

Buying a House: Negotiation Dos and Don'ts 49

What to Know about Home Inspections

Shopping for a Home Loan

VA Loans

10. Other Home-Buying Resources for Veterans 81

11. Programs for Traditional Home Buyers

12. The Closing Process

13. Organizing Your Move

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About Annette and Leslie e and Leslie Annette and Leslie form a dynamic real estate team in Las Vegas, Nevada, combining their unique certifications and extensive experience to deliver exceptional service to their clients. Together, they offer a comprehensive approach to real estate, catering to diverse client needs with professionalism and care. Annette brings a wealth of expertise as a certified Military Relocation Specialist, VA Agent, and Listing and Buyers Professional. With a background in sales, management, and executive roles, she excels in helping both military and non- military families navigate the complexities of relocation. Annette’s strategic marketing skills and vast network ensure homes are sold efficiently, while her deep local knowledge provides clients with valuable insights into the Las Vegas market. Leslie complements Annette’s strengths with over 18 years of experience as a licensed REALTOR® in both Oregon and Nevada. She is the founder of Las Vegas Realty Group and Las Vegas Property Management Group, offering full-service brokerage and property management solutions. Leslie specializes in properties across all price ranges, from luxury estates to more modest homes. Her dedication to client satisfaction is evident, with 95% of her business stemming from referrals. Together, Annette and Leslie share a commitment to high ethical standards and personalized service. Their combined expertise ensures that every transaction is handled with precision and care, making the buying or selling process smoother for their clients. Whether navigating military relocations or managing high-end properties, this team delivers unmatched value in the

Las Vegas real estate market.

Outside of their professional lives, both realtors enjoy active lifestyles. Annette spends time with her fiancé, family, and pets, and has a passion for crafting, creativity, and cooking. She also actively supports animal welfare causes. Leslie enjoys outdoor activities such as taking her dogs to Lake Mead, jet skiing, hiking at Red Rock Canyon, and riding at the sand dunes. In summary, both Annette and Leslie are dedicated real estate professionals in Las Vegas, each bringing unique strengths and specializations to their work while maintaining a strong focus on client satisfaction and ethical business practices.

Accomplishments Selecting an agent with diverse expertise and certifications offers numerous advantages in navigating complex real estate situations. Here's why partnering with our team gives you a distinct edge:

Annette's Certifications: CREN (Certified Real Estate Negotiator) CSI (Certified Sales Interrogator) CLP (Certified Listing Professional) CREM (Certified Real Estate Marketer) MRP (Military Relocation Professional) VA (Veterans Certified) CNHP (Certified New Home Professional) CEBA (Certified Expert Buyers Agent) Leslie's Certifications: Property Management Certification CLHA (Certified Luxury Home Agent) CELA (Certified Expert Listing Agent) ePro (Advanced Digital Marketing Techniques) ABR (Accredited Buyer's Representative)

Negotiation Expertise As a Certified Real Estate Negotiator, this duo brings specialized training in negotiation strategies to the table. This expertise allows them to effectively advocate for both buyers and sellers, ensuring optimal outcomes in every transaction. Their skills in managing various personalities and competing interests leads to higher client satisfaction and increased referrals. Listing and Marketing Proficiency Both Annette and Leslie are Certified Listing Professionals, offering significant advantages for property sellers. Their

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expertise in listing and marketing homes ensures properties are presented in the best possible light to attract potential buyers. With advanced skills in pricing strategies, negotiation tactics, and market analysis, they can facilitate quicker sales and potentially higher selling prices. Digital Marketing Edge Leslie's ePro certification and Annette's CREM (Certified Real Estate Marketer) designation provide a significant advantage in property marketing. They create targeted campaigns that effectively attract potential buyers using the latest marketing tools and platforms. This expertise ensures optimal property presentation across various channels, potentially leading to quicker sales and higher selling prices. Comprehensive Buyer and Seller Representation With certifications like CEBA (Certified Expert Buyers Agent), CELA (Certified Expert Listing Agent), and ABR (Accredited Buyer's Representative), our team is well-equipped to handle both sides of real estate transactions with expertise and professionalism. Specialized Services Leslie and Annette combine their unique certifications and expertise to provide exceptional real estate services tailored to a variety of client needs. Leslie is a CLHA (Certified Luxury Home Agent) and holds a Property Management Certification, showcasing her ability to manage high-end properties and diverse portfolios with professionalism and precision. Annette complements this with her MRP (Military Relocation Professional) and VA Agent certifications, demonstrating specialized knowledge in assisting military personnel and veterans with their unique housing requirements. Additionally, Annette’s CNHP (Certified New Home Professional) designation highlights her expertise in navigating new home transactions. Together, they leverage their individual strengths

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to deliver comprehensive and personalized service to every client. By choosing our team, you're partnering with knowledgeable and skilled advocates committed to achieving optimal results in your real estate transactions. Our diverse certifications not only enhance our credibility and trustworthiness but also signify our commitment to maintaining high industry standards and staying updated with the latest trends.

Why Choose Annette and Leslie? e and Leslie? With years of experience in the dynamic Las Vegas real estate market, both Annette and Leslie have honed their skills to provide exceptional service tailored to your unique needs. They believe that strong relationships are the foundation of success in real estate. By truly listening to your needs and communicating effectively, they have built a reputation for creating lasting connections with their clients. This approach has resulted in a high rate of repeat business and referrals. Being truthful with their clients, even when it's not what they want to hear, builds trust and credibility in the long run. This ethical approach not only aligns with their values but also ensures you make informed decisions throughout the process. The real estate industry is ever-changing, and they stay ahead of the curve by continuously updating their knowledge. From the latest market trends to cutting-edge technologies and best practices, they bring current, relevant expertise to every transaction. This adaptability allows them to navigate unpredictable market conditions effectively, ensuring their interests are always protected. Your satisfaction is their top priority. They are committed to putting your needs first, even if it means sacrificing short-term gains. This dedication to your success has built them a strong reputation and led to long-term success through referrals and repeat business. With deep knowledge of the Las Vegas real estate landscape, They offer invaluable insights into neighborhoods, schools, and local market conditions. This expertise allows them to guide you to the best opportunities whether you're buying or selling. They respect your time and work efficiently to streamline the buying or selling process. Their organizational skills ensure

nothing falls through the cracks, allowing you to focus on the excitement of your real estate journey. By choosing either of them as your real estate agent, you're not just getting a professional to handle a transaction – you're gaining a dedicated partner committed to your long-term real estate success.

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Testimonials & Reviews for Annette and Leslie e and Leslie

Below is a list of just a few people whom Annette and Leslie have helped buy or sell a home, and what they said about working with them: “Annette is a real estate goddess. Without her help and guidance, I never would’ve got through the process with my sanity. I have never met a real estate agent of her caliber. She is perfection. She is knowledgeable, intelligent, kind, and has such a beautiful personality and sweetness. We had so many laughs together that she made the whole process pleasurable. I don’t normally leave reviews, but in this case, I felt it necessary to sing the praises of Annette. I will not hesitate to use her again if I have the need." - Freda Honig "Leslie puts experience and compassion into property management and real estate for her clients. She absolutely has her clients best interest in mind by going above and beyond to make sure properties are rented. Her pricing is very competitive and she has excellent service. Anyone with a rental property needs to speak with Leslie about their property management “What more can you ask for in an agent who is patient, compassionate, understanding, responsive, personable, have your best interest, and to top it off, a bubbly-energetic personality that is contagious. This is Annette and she is awesome! I was referred to Annette and I am fortunate to has her as my agent. Buying a house is a big financial decision, especially since we're not familiar with the area. She was very instrumental and informative throughout the process - discussions on locations, loans, inspections, insurance, xiii needs." -Shawn

etc...Without her experience and guidance, we wouldn't have purchased and closed escrow. She truly has the clients best interest (top priority). I couldn't stress how important this was for me, based on my past experiences with out agents. I was not able to attend a few in-person meetings/inspections, but guess what, Annette was there in person as well as through FaceTime. Her communication and availability is exceptional and I wouldn't feel confident if it wasn't for her. She kept me informed and her demeanor keeps you at ease to ensure your needs and comfort level are met. I couldn't be more happy and satisfied with the end result. Any agent or buyer could end their real estate experience/relationship after escrow, but not for me. Til today, we still keep in touch, and occasionally I will drop a text. She's that personable and easy to get along with. Highly recommend Annette if you need an agent who will go the extra mile. Thanks for all your effort and time throughout this journey. Wouldn't feel as confident without your experience and guidance!!! Looking forward to our next meeting." - Sam Le “What made me decide to choses Leslie Reese as my Realtor was simple, she genuinely cares and wanted to help me. Even though I work in the real estate industry, I quickly learned there was a lot to the home buying process that I wasn’t aware of. Luckily Leslie was there to literally and mentally hold my hand through it all. I really cannot stress enough how genuine she is about helping her clients. In this market, buyers just expect to pay thousands over asking and/or make tons of concessions. I nearly settled for a “not so ideal” home (to put it nicely) because that was my mindset as well…I thought I just have to settle for whatever I can get in to and remodel after. But Leslie knew that home wasn’t what I really wanted! She found me another home ASAP in the same community, that was move in ready, in my price range, and had all the features that she knew I’d love.

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With Leslie’s expertise and guidance, my offer was accepted, without having to go into a bidding war with the other buyers, and I could not be more grateful that Leslie took the extra step to get me into a home that I LOVE versus letting me close on a home I thought I had to settle for. I would highly recommend Leslie Reese to anyone who is looking to buy/sell and have already told my friends all about her!” - Thuy Quach-Nguyen “You can’t get a better realtor than Annette! I completely recommend!! Quick to respond, very personable, listens to your needs! When we first contacted her, we gave her the timeline of when we needed to move. She contacted us right away when that timeframe came up and got our lists of our wants and needs. She informed us about the current market and we talked about our price range. She never showed us a place that was over our budget! No matter what time of day, she always responded quickly to my questions. If she didn’t know an answer, she immediately found it for us! She made the process so easy and fun for us! I cannot thank her enough for helping us find our new home! " - Taylor Guinn “I moved to Vegas January of 2018 I had no clue of any Realtors here so I Googled Realtors of Las Vegas and up popped Las Vegas Realty Group, I went ahead and took my chances. As a widowed man they made my home buying needs so easy putting up with me of no I don't like this no I don't like that. Their knowledge of the Vegas communities and negotiating skills are totally unquestionable, her response time back to me was no more than a 15 minute wait. I was working directly with Leslie and she would not allow me to pay more than the house then it was worth, her honesty is so much appreciated. I wish they had more than a 5-star rating because I would give Las Vegas Realty Group a 10-star. My chances that I took with Las Vegas Realty

Group paid off and when it comes to selling I know there's only one phone call I'm going to make.” - Stephen Hudson “My husband and I feel so lucky we found Annette! She is a down to earth person who actually listens to her clients wants and needs and does everything in her power to find them. Even when we kept changing our criteria on her, she responded quickly and always had a smile and no worries attitude. She answered all our questions quickly whether it was in person or via phone/text and was with us throughout the whole process of looking for a home, finding a home and purchasing our wonderful forever home. We also had some requests we wanted to make to the seller and Annette went to bat for us and was able to get everything (within reason of course) we wanted and then some. I would definitely recommend Annette to anyone looking to buy or sell a home. She's the best!! Thank you Annette! " - Rodney and Holly "Leslie has helped me purchase 3 different properties. She is always responsive to any inquires. Since I live out of town, she never hesitated to be my eyes and ears when thinking about purchasing a property. I am very glad I found Leslie!” -Rita Carstenshall "Annette deserves 10 stars not just 5! She is a standout in every respect! Nobody we have ever met is as responsive or committed to serving us as she was. On one occasion we called her on short notice to view a property. Within 30 minutes we were on our way to visit not just one but two properties. She also learned our likes and dislikes very quickly which enabled her to find properties that were contenders. And throughout the sales transaction process, she was extremely thorough and remained our strongest advocate. We cannot say enough good about Annette's personal commitment - the results speak for themselves - we could not be happier with our new home! "

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- Joe and Kathy Schroedel

"Leslie helped see us through an incredibly smooth and efficient process for buying our new home! She was always urgent and available to keep the process moving along, and it was clear from the start that our best interests were always her main concern. Whenever we had questions or concerns, Leslie was available to assist us. I firmly believe we wouldn’t have successfully gotten through the home buying process without her!" -Alec Albnathy “Annette is an amazing realtor. We originally had a different realtor and while they did their job it felt more like they were just doing their job. We'd find a house, put in an offer, not get picked, and then moved on. After months of repeating that, one of our relatives recommended we talk to Annette. From the beginning her optimism and energy was night and day with what we were used to. Annette immediately reached out to our lender to come up with a game plan for us. By the time we got to Annette we were pretty desperate to find a house. Here's how I knew she was different. On one of our bids, we got some interest but the seller was asking for quite a few things. She could have told us to accept the asks knowing how desperate we were but she recommended we decline and keep looking. She could have made an easy commission from us but knew it wasn't in our best interest. The house we actually got; we didn't even want to put a bid in but Annette said "you won't know unless you put in an offer." In the end it was us and two investors and with all the work that Annette put in for us, the sellers ended up picking us. She's a wizard! Even after we closed, she’s been here to help us with not just our property but on a personal level as well. We've even exchanged messages as late as 11pm just chatting about properties and joking around. Her contact will forever be in my phone. If anyone ever asks for a recommendation or if I decide to sell/buy again, she'll be the first person I reach out to. My family and I can't thank her enough for coming through when

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we were in a tough spot." - Hoai Ly

"Leslie was an invaluable asset in our Las Vegas home search. Her extensive knowledge of the city's neighborhoods and market trends proved to be incredibly helpful. She went above and beyond to connect us with the right resources, ensuring a smooth and efficient closing process. We highly recommend Leslie for anyone looking to buy or sell property in Las Vegas." -Rich Saito “Annette was awesome! As first time homebuyers she paid attention to all our wants and needs for our new home. We never felt like she was trying to push us towards something that was over our budget or not suited for us just to make a sale. She took her time with us and went to MULTIPLE houses trying to find our “perfect” match. She is a wealth of knowledge and you feel like you’re working with a friend from day one. I would highly recommend Annette for all your real estate needs. - The Behnings " - Victoria and Blake Behning "We hired Leslie to sell our Las Vegas home. I have worked with Leslie for many years and so I know her talents and what she's capable of. I challenged her on this one and she came through with flying colors. She convinced me to list my home much higher than I thought it was worth and she had us in contract in under 2 weeks. Everything went smooth and my wife and I couldn't be happier with how well she handled the entire transaction from beginning to end. Thank you Leslie for a job well done!" -Matthew Garnes Adams "Annette is an absolute pleasure, truly. She is extremely knowledgeable about Las Vegas and guided us through every aspect of home buying with such ease. She made us feel as if we

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were old friends so the trust came naturally. We have now purchased a lovely home and it's all thanks to Annette, really. Thank you for your professionalism, patience, punctuality, and pretty awesome personality. For any future home buying, look no further." -Oliver D "Leslie Reese is amazing!! I was after something specific and she was so patient and understanding right from the start, I held out and we ended up finding a place that suits me perfectly. She's very responsive and was able to reach out and get answers to any questions I had about potential places quickly. This was my first time working with a realtor and she made everything so easy! Thank you very

much Leslie :)" -Aaron Zuber

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CHAPTER 1 How Real Estat eal Estate Agents Help e Agents Help Veterans Buy Homes y Homes

I’ll come right out at the start and tell you I’m a real estate agent—proudly so! Nice to meet you! I’m not trying to sell you anything, but I’m pleased to be of service. I’m giving you the benefits of experience and advice I have gleaned throughout my career selling houses and being in real estate transactions—for both sellers and buyers. If you want me to help you find a house, we can talk. Call me if you need me. 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, Realtor.com, or one of hundreds of other real estate websites. So that means there’s no real need for a buyer’s real estate agent, right? The reason to use a real estate agent is to find a home and show homes available for sale, right? If a buyer can find and visit a home on the web all on their own, why involve another party?

WHY VETERANS NEED A REAL ES ANS 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 the proliferation of services to assist veterans in handling their own real estate transactions came about recently, throughout the last decade. This has caused veterans like yourself to wonder if using 1

a real estate agent is no longer necessary or if it’s an expense that can be avoided. While doing the work yourself can save you money if you buy a “For Sale By Owner” (FSBO) house and the seller agrees to reduce the price to offset agent compensation, for many veterans, a do-it-yourself home purchase might be pricier than a real estate agent’s compensation in the long run. On most home sales, there is a listing agent (the agent engaged by the seller to sell the property) and a selling agent (the agent who introduces the eventual buyer into the transaction). The selling agent is sometimes called the “buyer’s agent” because he or she is often working on a certain 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, including veterans like yourself, 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. A buyer's agent is therefore a real estate professional dedicated solely to representing your interests as the buyer throughout the home-buying process. Once you agree to work with a buyer’s agent, you will sign a written buyer agreement outlining key

services and compensation. Then the buyer’s agent will work on your behalf, helping you find properties that meet your criteria, scheduling viewings, negotiating offers, and handling all the necessary paperwork and legalities involved in purchasing a home.

BUYER AGREEMENT GREEMENTS

New regulations will mean that potential home buyers will need to enter into a written buyer’s agreement before touring homes. A written buyer agreement is a formal contract between you and your buyer's agent. It outlines the services your agent will provide, the terms of your working relationship, and how the agent will be compensated. Compensation for the buyer’s agent can be directly paid by the buyer or negotiated in various forms. This agreement ensures that both you and your agent are clear on your mutual expectations and responsibilities.

Key Components of a Buyer’s Agreement

• Services Provided: Details of what your agent will do for you, such as finding homes, arranging viewings, and negotiating terms. • Compensation: Clear disclosure of how your agent will be paid. This could be a percentage of the purchase price, a flat fee, or another arrangement. It's important to know that agent fees are negotiable and not set by law. • Term and Termination: The duration of the agreement and conditions under which it can be terminated by either party. • Consumer Protection: Disclosures related to your rights, confidentiality, and any potential conflicts of interest.

Entering into a buyer's agreement provides several benefits. First,

it brings clarity to your relationship with your agent, ensuring that both parties understand their roles and responsibilities. Second, it demonstrates a commitment from your agent to dedicate their efforts to your home search. Lastly, it offers protection by safeguarding your interests and ensuring transparency throughout the transaction. By having a formal agreement, you can proceed with confidence, knowing that your agent is committed to helping you find your dream home while protecting your interests.

MORE ACCESS TO THE REAL ES O THE REAL ESTATE MARKE TE 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 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 the case when a buyer is moving due to relocation or employment opportunity and does not engage a buyer’s agent to handle matters. This certainly applies to veterans like yourself, who may be purchasing a home in a new location after leaving military service, or retiring to a favorite city or state they were once stationed in, or back to their hometown, where they may not have lived in a while.

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 counter-offering.

Agents keep the transaction dispassionate and rational. For example, a buyer (you) might like a home but despise 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 can see having to spend a certain amount in decorating costs, and thus can 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 or title agent, 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. One 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 then put the home back 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 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 NECESSARIL N'T NECESSARILY SAVE MONEY

The point of not using a real estate agent would be to save money, right? Otherwise, why would someone turn down professional assistance in finding a home?? However, it’s unlikely that both the buyer and the seller will reap the benefits of not paying real estate agents. Veterans looking to purchase a home sold by an owner without an agent may believe they can save money on the home by not having an agent involved, and so they look solely at FSBO houses. They might expect money to be saved and make an offer accordingly. Unless the buyer and seller agree to split the savings, they can’t both save that money—and that’s if the listing price was not already lowered to make it more market-attractive. Here’s a short list of the advantages that using a real estate agent can bring to your buying experience: • Education and experience • A buffer between you and the seller • Neighborhood knowledge • Price guidance • Market conditions information • Negotiation skills and confidentiality • The ability to handle paperwork The ability to handle closing questions • Relationships for future business For veterans looking to relocate to a new destination they may not be very familiar with, a real estate agent brings that on-the- 6

ground knowledge about the best neighborhoods for you and your family, whether you are still raising your family, or empty- nesters looking for a quiet (or active!) retirement community. 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 know what to expect, and what will be expected of you.

WHO A REAL ESTATE AGENT IS GENT IS

Simply put, a real estate agent is someone licensed to list and sell real estate, including homes, multi-family properties, 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®. As mentioned, real estate agents who work on behalf of the best interests of the buyer are commonly called buyer’s agents. All listing agents represent the seller, but other agents who don’t have buyer agreements with prospective buyers are working on behalf of the seller and must obtain the best price they can for the seller. Buyer’s agents are dedicated to looking out for the buyer's interests throughout the home-buying process. Buyers can schedule consultations with agents to learn more about the services they offer and to assess who can best represent their needs. Once buyers have decided on an agent who they feel can effectively represent them, they will enter into a buyer's agreement, formalizing the relationship and ensuring that their interests are protected during the search for their new home.

HOW TO CHOOSE THE BEST AGENT FOR YOUR NEEDS UR 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. As with any professional, there are degrees of professionalism, dedication, and experience. The “wow factor” will simply wear off. Meet with prospective buyer’s agents in their offices. A good buyer’s agent will want to know whether you’re pre-approved for a loan by a financer, what kind, and the terms of the loan you’re getting. As a veteran, you should definitely inquire if the agent you are considering working with is familiar with or has worked with veterans who will be using their VA loan benefits to buy a home. The agent should spend adequate time to discover what you’re looking for in a house. They should listen as much as talk and ask questions. Watch to see if the agent makes notes. If the agent doesn’t broach the topic, ask for an explanation of his or her 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 agreement, that agent is representing the seller, not you. 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, and not only listings that are handled in-house. Buyer’s agents have the legal duty to put the 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 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 can help veterans 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 art 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. According to the San Francisco Chronicle’s Home Guide, if you decide to buy with the intention of building an addition, or making modifications to accommodate a veteran who uses a wheelchair, or has another type of disability, the agent should advise you to check the zoning before making an offer. Agree to sign a buyer’s agreement after you have met with an agent, and discuss the terms for payment, whether that's a negotiated commission structure or a direct payment from buyer to the buyer's agent. A buyer’s agent is legally required to maintain your confidentiality, disclose material facts to you, including the potential for direct compensation, and maintain loyalty to you.

LOOK FOR PROPER CREDENTIALS

You wouldn’t trust a doctor who didn’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—like those who have gone that extra step to take additional classes in certain specialties of real estate sales

and have worked with veterans using their VA benefits to buy a home—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. • Certified Residential Specialist (CRS): t (CRS):Completed additional training during the handling of residential real estate, such as houses and apartments. • Seniors Real Estate Specialist (SRES): RES):Completed training for the purpose of helping sellers and buyers 50+ years old. Similarly, if you choose to use a real estate agent who’s also a member of the National Association of REALTORS®, it will be a bonus. However, ensure they have credentials that are relevant to your need(s).

RESEARCH LICENSING

Your state will have a license board for all active REALTORS® and agents, which you can easily access. You will also be able to see their contact 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 homes that are out 10

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 area and price range—e.g., residential homes around the $200,000 to $250,000 range or the $400,000 and up range.

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. 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. When you find the right one for you, these real estate agents will work day and night to ensure all your needs and requirements are met when it comes to finding the right home.

GETTING STARTED WITH A B TED WITH A BUYER’S AGENT

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, the law, zoning issues, price trends, negotiations, taxes, financing, and insurance. Once you meet with the buyer’s agent and sign the buyer’s agreement, they’ll generally help you determine your needs and wants when it comes to finding a home and a neighborhood. The agent will teach you what you can afford, help you set a budget, provide some insight on the current conditions of the market, and explain what you should expect while shopping for a home. During the shopping period, you’ll meet with your agent for tours of homes in which you might be interested. They will give your insight into the floor plans, the home’s pertinent selling points, and the overall crime rate of that neighborhood. They will also give you the rundown for local activities, restaurants, 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 and completion is done through the roof inspector, attorneys, lenders, and all other professionals involved with the purchase of the home. If bargains need to be made over the price, you won’t have to negotiate yourself. Your buyer’s agent will do that for you, along with signing the final closing documents. They will be present whenever there are documents to go through and sign.

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. Even in states where allowed, dual agency must be clearly disclosed and consented to by all parties involved. This arrangement can create potential conflicts of interest, and buyers should be fully aware of these implications before agreeing to dual agency. 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. If you’re selling your home and you don’t want your agent to also work with the buyer of your home, it’s your right to say so in the listing agreement. This is also true for buyers. A buyer can get out of an agreement with an agent if they are interested in purchasing a home their agent is listing. When it comes to dual agency, there are definite advantages for the seller. • Trust has already been gained with your listing agent, so representation for the buyer has been established. • Your agent brought you the buyer knowing that you’re selling, even if your property has not yet hit the market. • Your listing agent will have already covered and researched your neighborhood’s market to gain buyer

inquiries, which means your agent will be working from all sides of the deal to sell your house faster, and with more incentive. • Your agent works together with corporate relocation buyers who need to find a house quickly, and they will ensure it’s your house that’s bought. There are also cons for the seller 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 compensation from both buyer and seller, 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 agents. To avoid surprises or missteps in a dual agency sale, always ensure you have clarified important details with your agent ahead of time. You can do this by using an exclusive buyer agreement or a listing agreement.

HOW REAL ESTATE AGENTS ARE PAID

The compensation structure for real estate agents can vary, especially with recent regulatory changes that offer more flexibility and transparency. Agents are required to disclose their compensation arrangements clearly in the buyer agreement. This

ensures that you, as a buyer, understand exactly how your agent will be compensated and can make informed decisions.

Possible Compensation Structures

Recent regulations now allow for more varied compensation structures. Buyers will need to be proactive in understanding the costs associated with their agent's services, and may need to factor these costs into their overall budget for purchasing a home. Here are some of the ways a buyer’s agent can be compensated: 1. Split Commission Model: Starting August 17, 2024, commission information will no longer be communicated via the MLS (Multiple Listing Service). Compensation agreements based on commission must now occur off-MLS through negotiation and consultation between real estate professionals. These agreements may still follow the traditional split commission model, where real estate agents are paid a commission based on the final sale price of the home. This commission is typically a percentage agreed upon between the seller and the listing agent. If using this payment model, the buyer's agent would receive a portion of the commission, as arranged between the listing agent and the buyer's agent. Typically, all commission payments go through the broker managing the brokerage where the agent works. From there, the commission is split between the broker and the agent according to their internal agreement. 2. Direct Payment from the Buyer: The buyer may agree to pay their agent directly. This can be a flat fee, an hourly rate, or a percentage of the purchase price. 3. Negotiated Arrangements: Other customized compensation agreements can be negotiated between the buyer and their agent. Before you start touring homes, you will need to enter into a written buyer’s agreement with your agent. This agreement will

outline the services your agent will provide, the compensation structure, and other terms of your working relationship. The greater flexibility for agent compensation methods due to recent changes in regulations reinforces the importance of entering into a written buyer’s agreement. This formal agreement ensures both parties are clear on expectations and protects your interests throughout the home-buying process.

CHAPTER 2 Owning vs. Renting

Owning your own home might be one of the defining qualities of the “American Dream:” the set of ideals that includes opportunity for prosperity and success and an upward social mobility for the family and children, achieved through hard work. Home ownership is surely ingrained as one of the strongest representations of that vision—66% of Americans own their own home, and more hope they will or wish they did. Something about home ownership plucks a strong chord with Americans. Financial security, permanency, status, and pride are values many of us seek. Lifestyle plays a big role in the decision to own versus rent. Home buying is most often driven by household formation, such as marriage and growing a family. Less than 40% of people under 35 years old own homes, 60% of people over 35 years old own homes, and more than 80% of people 65 years old or over own homes. Interestingly, for the millennial generation, the primary reason for buying a home? Owning a dog. The U.S. homeownership rate has fluctuated between 62% and 70% since the 1950s. Most young people begin their independent lives renting an apartment, maximizing lifestyle flexibility and minimizing the hefty upfront costs associated with purchasing a home. As they build careers, save money, and start families, many choose to buy a home, recognizing that home ownership, as opposed to rental living, is more appropriate to their growing family needs. At the other end of the age spectrum are homeowners nearing 17

retirement who may desire to sell their homes, downsize, avoid the maintenance and other obligations, and go back to renting.

WHICH IS BEST?

Is it better to rent or buy a home? Most adults ask themselves this at some point as they form their goals and plan for the years ahead. Before you answer the question, here are some things to ask yourself. Owning and renting each have their advantages, but what’s best for you depends on your circumstances. What will be the duration of your stay in the home? Each market is different, but whether the time you plan to spend in the house warrants its purchase is possible to predict. In general terms, it takes four to seven years to break even on a home (i.e., where there has been enough appreciation to pay back the cost of the transaction and cost of ownership). If you’re thinking about buying a home and selling it in two years, buying is very unlikely to be cheaper than renting. Do you think of or need your house as an investment in your retirement plan? Many Americans see their homes as a valuable asset, often integral to their retirement strategy. Real estate is commonly regarded as a solid long-term investment, frequently favored over other options like stocks, gold, or savings accounts. Its appeal lies in the potential for value appreciation over time. However, it's wise to remember that the real estate market is subject to fluctuations. Property values can both increase and decrease, influenced by various market and economic factors. This reality highlights the importance of considering real estate as one component of a diversified investment portfolio, recognizing both its potential benefits and inherent risks. Are you financially ready? Owning a home is a financial commitment that requires planning how home ownership fits into where your life is headed. Ask yourself what your budget

is and if either buying or renting would require you to stretch your finances. Crunch all the numbers. A frequent mistake of first-time home buyers is comparing a month’s rent to a month’s mortgage payment. Many people don’t have all the numbers. There are many additional fees necessary to include to make a fair comparison: principal interest, property taxes, property insurance, homeowners’ association (HOA) fees, and ongoing maintenance. Are you prepared for the down payment? This is the lump sum payment that funds your equity in the property (how much of the property you actually own). Down payments vary; 20% is preferred and gets the best rates. There are some loans that allow down payments as low as 3%. Sometimes relatives help with the down payment. If you have a choice, take a gift rather than a loan because lenders will add the loan debt to other monthly obligations and potential mortgage payments to determine your debt-to-income ratio, which generally can’t top 43% to qualify for a home loan. Can you afford the monthly mortgage and its components? Generally, a mortgage includes loan principal and interest (both amortized over the life of the loan) plus homeowner’s insurance and property taxes (prorated). These items can affect the monthly loan-only payment by several hundred dollars. Are you emotionally ready? Can you handle the stress? A big factor to consider when buying a home is stress. The Holmes and Rahe Stress Scale, a landmark stress study, ranks many events that go along with buying a home in the top 43 most stressful circumstances in life. Four events are specifically home-related: change in financial state (No. 16), large mortgage or loan (No. 20), change in living conditions (No. 28), and change in residence (No. 32). If someone has recently made other life changes, such as marriage (No. 7), switching careers (No. 18), or having a child (No. 14), it might be wise to postpone buying a home. Stress

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