The Simple FAQ - Part One
Over 16 years in real estate, yes, I have acquired quite the question list. I am of the belief that there are absolutely no dumb questions. I say that to clients; I say that to students. I’m hired as the expert because I know these things and you don’t. It’s why I’m here.
So, for Part One, let’s take a look at some of the basic questions we get.
1. The seller pays your commission, right?
Mayyyyyyyyyyyybe. It truly depends on what your offer says. Since the dawn of time, commissions have always been negotiable. But because of how things just happened, we rarely ever brought in that negotiation piece. Before the lawsuit in 2024, it was common for a Realtor to tell a buyer, “You get us for free!”
What happens now is this: When we meet and you decide that, yes, you want us to represent you, we will have you sign a Buyer Broker Agreement. In this document, everything is spelled out for you: what we do, how we do our thing, whether we’re showing you one property or a bunch until you close, how long our agreement lasts, and how much you are willing to pay for our services. Is it a flat fee? Is it a percentage? That’s the first part of the negotiation. This agreement is between you and us, no one else.
When we write an offer, we have the ability to include a request for the seller to pay the commission. THIS IS WHERE THE NEGOTIATION HAPPENS. We have to take whatever amount we have agreed to in the agreement and ask the sellers to pay it. The sellers will look at our offer, crunch the numbers, and make their decision. They can say yes, no, or agree to a portion of it.
Now, if you’re willing and able to handle the fee we’ve agreed on, then of course we won’t have to ask for it in the purchase offer.
Yes, this is a simplified answer.
2. If we need a roofer or inspector or or or, you’ll tell us who to use, right?
NOPE. I will give you a list, and it is your responsibility to pick the one you want to use. Hit Google and look for reviews. Ask friends/neighbors who they used. My list will be of vendors I’ve used in the past, had good results from, and trust. I’m not going to just say, “I’ll go ahead and schedule Greg the Inspector.” That is opening me up for all sorts of issues, and issues for you as well.
3. You mean you won’t recommend a lender either?
Oh, I’ll give you names, but you must SHOP. Every lender has their own programs, rates, and specials. If you want a specific product like a VA loan, there are going to be specific names that I’ll give you. I will always prefer you use a local lender or broker, but if a national lender is where you want to be, then that’s where you’ll go. But... and this is important…the lender you choose must be reachable. I don’t want you waiting 2 weeks to see if you need to submit anything else. My local guys and gals are textable and reachable on weekends. I know where their companies are and probably where their office is inside.
4. But Zillow said….
Zillow is a cool website to look at homes. BUT beyond that, it cannot tell you the character of the neighborhood. It can’t tell you that the house may back up to vacant land but that land is owned by a big builder and you’ll soon be staring at construction and 2 story homes.
Zillow may tell you that your home is worth $300,000 without taking into account everything we do when we price homes. It isn’t just recent sales or price per square foot. We’re looking at upgrades inside and out, age of systems, appliances and the roof, the floorplan, landscaping, the views, the neighborhood, etc. There are a hundred things we look at while they’re looking at what they can find online. Sure, we’ll talk about what Zillow says but don’t count on us taking what they say for gospel.
5. Do I really need to talk to a lender before you show me homes?
Yes and here’s the simple answer: Let’s say we just go out all willy nilly one Saturday and I show you a home in Picacho Hills. You absolutely fall in love and start to figure out where the bed goes in the primary. Then, you talk to a couple of lenders who both tell you that you can shop for a home that’s $250,000 and no higher. Now that Picacho Hills home that’s listed at $450,000 becomes the enemy and every home we see after that fails in comparison.
It’s irresponsible for a Realtor to show homes without a buyer talking to a lender. I’ve lost a couple because I wouldn’t show without a pre-qualification letter. I said what I said. You don’t go car shopping without knowing what you can afford. You don’t book that European vacation without knowing what it’s going to cost. Buying a home is the biggest investment you will probably ever make. Talk to a lender. You’ll be glad you did.
OK - I think 5 questions is enough for now. Come back for Part Two where I’ll dive into more
