A Homebuyer's Guide to Understanding Real Estate

By Donald J. Welsh, Ed.D.
Illustrations by John Bennetts

Buyer Agent's Job Description

Consider the agent as a working member of the search team. The general responsibilities of the agent will be to guide buyers through the process of identifying the appropriate home, making the offer, securing the contract and coordination of all activities. Specific Duties:

1. Clarify representation and complete buyer agreement.
2. Qualify buyers for the ability to finance the purchase.
3. Determine buyer's specific home needs and wants.
4. Set time schedules for home viewing.
5. During the tour of homes, secure feedback from buyers and make notes.
6. Refine needs and wants criteria as buyers learn what the market has to offer.
7. When buyers make a final selection, conduct a walk through inspection to identify damage or defects.
8. Conduct a search of sold properties in the subdivision to determine the property's real value.
9. Assist buyers in arriving at an appropriate offer.
10. Review all factors that should be considered by the buyers and prepare an offer to purchase the home.
11. Deliver the offer to the listing agent, avoid disclosing information about the buyer that could weaken their bargaining position.
12. Give full attention to the offer until it has been accepted, negotiated with acceptable changes, or withdrawn.
13. Coordinate access to the home for mechanical, structural, and infestation inspections.
14. Join buyers at the closing meeting to finalize the contract.

Purchase Offer Checklist

• Does this home provide for all needs and a majority of wants identified on the planning document?
• Have the buyer and agent conducted a walk through inspection?
• Will a structural inspection be necessary?
• Has the seller disclosed any home defects and/or damage?
• Has a tour of the neighborhood been made to identify desirable and undesirable factors?
• Have buyer and agent discussed the need for a home warranty?
• Have the reservations, restrictions, and covenants on the property been reviewed?
• Has the buyer considered the use of an attorney to review the offer and long form real estate contract?
• Does the comparable home value analysis justify the price being offered on the home?
• Are the loan contingency terms designed to protect the buyer?
• Are all personal property items that are going to be transferred with the property included in the offer?
• Does the offer request the seller to deliver to the buyer a title insurance commitment with the policy insuring the buyer against liens or rights to any liens for service, labor, or materials imposed by law and not shown on public record?
• Does the offer state that the buyer shall have the opportunity to employ an inspector to search for infestation and damage, and a firm to conduct mechanical, structural, and environmental inspections?
• Does the statement require the seller to pay for any required treatments, repair, damage, and/or inoperable equipment? Is there a time limit set for acceptance of the offer?
• Does the offer require the seller to leave the property in a broom swept condition, with no debris left on the property and to pay for any damage caused by the movers?
• Does the offer have a clause that requires the seller to release all earnest money if any conditions of the contract can not be upheld?
• Does the buyer understand that upon the seller's acceptance of the offer, the buyer is legally bound by the contract?

Community and Home Needs

How long do you plan to live in this home?

Prioritize the following:

Identify your basic needs and desired features. Mark each basic need with (�) and each desired feature with (+).

Beware of these Statements

"I represent the seller, but it is really not significant to you."

"I will help you find the right home and a great buy."

"This is a seller's market and the seller will not take less than the listed price."

"There has been a lot of activity on this home and it won't stay on the market long."

"Another agent is working on an offer."

"This is the best buy on the market."

"I wouldn't wait to make the offer."

"This is such a lovely home, it has so much charm."

"Can't you just see yourself preparing dinners in this kitchen?"

"You'll love relaxing in the whirlpool."

"Just imagine the comfort of this master bedroom."

"Let's write up an offer and see what they will take."

"Your mother will love this home."

"I will negotiate a good deal for you."

"Sorry! I did my best, but they want full price."

"Oh! By the way, you will need to sign this disclosure form."

If You Want to Get the Best Home Value and SAVE $$$$$

Don't use an agent that represents the seller.

Don't use a buyer agent who is associated with a broker that lists homes

Don't feel obligated to use an agent recommended by a friend.

Don't accept an agent referral through a relocation company, unless the referral is to a buyer broker.

Don't feel obligated to work with the agent who has listed your house. The listing contract is only an
agreement to sell your home.

Don't make an offer that is contingent upon selling your home as it weakens your bargaining position.

Don't keep critical information from your buyer broker.

Don't procrastinate when it's time to make a critical decision.

Don't make the decision based solely on your love for the home.

Don't be afraid to make a low offer.

Don't make the offer until you have reviewed the sold comps.

Don't forget whose money you are spending.

Don't overlook the significance of location.

About the Author, Donald J. Welsh, Ed.D.

Dr. Welsh, a training consultant, National Lecturer for Nova University, and a former college administrator, has devoted his career to the development of people in diverse stages of their lives. His leadership has been instrumental in the development of many nontraditional programs that have served unique community needs. He has always been motivated by the challenge of a change agent role.

In his early development as a craftsman in residential home building and a vocational woodworking instruction, Dr. Welsh was a student of design and technology changes in the housing industry. Later in a mid-career change, he expanded that interest into the real estate industry as a real estate salesman and investor. Dr. Welsh has been a licensed real estate salesman and broker since the late 70's. In 1991, after extensive research on changes in the industry, Dr. Welsh established a buyer agency real estate brokerage.

Conditioned to follow the "Golden Rule" throughout his growth and career, Dr. Welsh soon learned that these values were not practiced by many of the professionals involved in the industry as changes were being made to provide home buyers agency representation. The failure to communicate changes even extended to newspaper editors, television program directors, corporate relocation managers and personnel directors. At each of these levels, the fear of losing business and or personal favors extended by those in the industry seemed to prevail over the duty to inform their constituents of the changes in the real estate industry.

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