Archive for January 21, 2014

First Time Home Buyers Should NEVER Buy at an Open House‏!

Why shouldn’t first time home buyers buy at an open house?  Open houses can be traps for first time home buyers.  You can OVER PAY.  You can end up with NO REPRESENTATION.  And you can end up with BUYER’S REMORSE.

Why would you over pay at an open house?  Especially in today’s market, open houses can be feeding frenzies for first time home buyers.  They are generally crawling with buyers, so even if no one else is interested in the house you may have the perception that it will be a bidding war and therefore end up offering more than necessary to get the house.

How do I make sure I have representation?  We’ve written past blogs about Who the Listing Agent Represents. Dual agency (working with the listing agent) is something you want to avoid like the PLAGUE, especially considering first time home buyers generally don’t have to pay for their OWN representation.

How do open houses increase buyer’s remorse?  Again, if there is a lot of activity at the open house, you may get emotional and make a snap decision.  This may lead to buyer’s remorse as you may have decided not to buy the house under different circumstances.

So how do I get inside the house?  All first time home buyers should hire a professional real estate agent.  This will ensure that they have their own representation and a professional looking out for their best interest.  Your real estate agent will schedule PRIVATE showings so you can view the home without the unnecessary duress of an open house.

Don’t make the biggest financial decision of your life without getting educated!  If you like to find out more about hiring a real estate agent or the home buying process in general, please go to our Calendar/Reservations page and sign up for one of our FREE First Time Home Buyer workshops.


Should I Hire Multiple Realtors?

Should I hire multiple real estate agents when buying a home?  We run into this question a lot.  Generally, the answer is, “No, you shouldn’t.”  Working with more than one agent usually does you more harm than good.  If you’re looking in two DRASTICALLY different areas, say Seattle and Tacoma, it may make sense to work with different agents from respective areas.  But if you’re mostly looking in the same general geographic area, there’s usually no real benefit.

But my dad said you should always work with as many agents as possible!  Many people think by using multiple agents, they’ll have access to more listings.  This may have been true decades ago, before the internet was invented.  But now a days, most listings are in the MLS and therefore online, so any agent you hire should have access to all available listings.

But if I don’t have to pay my agent for their time, how can it hurt to hire several?  Some people feel that pitting multiple professionals against each other will make them work harder.  It actually tends to be the opposite.  If everyone involved knows you might buy from someone else, they may just try to make a quick sale and sell you the first thing you see.

So if I can find listings online, why should I work with an agent at all?  An agent should be doing much more than showing you homes.  They should be educating you as to whether or not the home is a good investment, structurally sound, will have good resale value, etc, etc, etc.  This is a big decision and you need to align yourself with a professional that will have your best interest at heart.

So how do I know which real estate agent to work with?  You should talk to more than one professional.  Learn which questions to ask to ensure that the person you ultimately hire is the right one for the job.  Like any industry, there are awesome people in the real estate field and lame ones.  Make sure you pick the right one.

Don’t make the biggest financial decision of your life without getting educated!  If you’d like to learn more about how to hire the best real estate agent for you, or the home buying process in general, please go to our Calendar/Reservations page and register for one of our FREE First Time Home Buyer workshops.