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Home Buyer Tips...

A. Check Your Credit
If you've ever tried to buy a house, obtain a car loan, or rent an apartment in the city of your dreams, you know how important it is to have a clean credit report. A couple of two-year-old missed MasterCard payments, and suddenly you're groping to explain why the blotches on your payment history are less than what they seem. It's even worse if you discover mistakes on your credit report when you're in the middle of trying to obtain a loan.

It's always a good idea to review the information in your credit file before your lender does, and you can check with Equifax at www.equifax.com to review your history.

B. Buying vs. Renting

Buying

You will have a great tax write-off.
Your housing expense may never go up.
You can use, decorate, make physical changes and enjoy your home as you see fit.
You may build a large equity as your home appreciates in value.
You are not at the mercy of your landlord.
Your house will become a home, not a temporary living situation.

Renting

You have no tax write-off.
Your rent can go up each year.
You must get permission to make any changes to your dwelling.
You have no equity build up. Your money is gone for good.
You can be evicted.
Your living situation is always temporary.

C. Benefits of a Buyer's Agency
Although the typical agency agreement spells out the fiduciary duties an agent must fulfill for the seller, the buyer is often left, in a sense, unrepresented. However, buyers too have the option of being represented exclusively by their own agent. Consider the following benefits:

Loyalty
- The real estate agent must act in the best interest of the buyer
Obedience
- Must follow the lawful instructions of the principle (buyer)

Disclosure of all material facts
- Examples, but not limited to:
  - Relationships between agent and other parties
  - Existence of other offers
  - Status of earnest money
  - Seller's financial condition
  - Property's true worth
  - Commission split with other brokers
  - Legal effects of important contract provisions
Confidentiality
- Any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties
Accounting in dealings
- Reporting of where any money placed in the hands of the broker is kept
Reasonable skill and care
- Arriving at a reasonable purchase price and advising buyer of such
- Affirmatively discovering material facts and disclosing them to the buyer
- Investigating the material facts related to the sale

As a buyer's agent, I represent you and your interests in the purchase of your new home, not the seller's interests. This is different from a typical sub-agency transaction where the buyer is not technically represented. When you are looking to make the biggest investment of your life, it's not hard to understand why it is important to be represented exclusively.