An Agents Role

Today I have summarized what the key aspects are in an agent’s role when working with either the buyer or seller.

Working with a buyer as a representative

The agents should work closely with the client in a professional relationship to review their wants and needs continually throughout the process. The agent should provide the buyer with CMA (current market analysis), which should include property comparisons in the market, recently sold properties, market conditions and updated information of the inventory. The buyer should be informed to base the offer from the current interest rates. The buyer’s advisor should request a home warranty from the seller in order to discuss issues like who is going to pay for the closing costs. The agents should prepare the buyer for counter offers and multiple offers. In case of another buyer gives a higher offer to the sellers, the agent then should have a discussion with the buyer to the extent they are willing to compromise on their offer price. It is not just the price that can be negotiation; the deposit, closing and commitment date can all be adjusted. The original contingencies can also be negotiated if terms to the contract change.

Working with a seller as a representative

The agent must prepare the seller for multiple, or counter, offers. If a buyer puts in a low offer, communications should still be kept in order to increase the price at a later date as the buyer may have begun low to see how little they can get away with.

Sellers may have an emotional price tag to their property, like if they raised their family there or lived in the property for many years. It is the agent’s role to ensure the seller keeps forced on the market value of the property, as the market will only see the inventory as any other commodity. As a way of trying to avoid this, the agent should update them on the CMA of the property, the inventory levels, recently sold property and market trends like appraisals and mortgage rates. Seller needs to know their responsibility in terms of final inspection, appraisals, final utility reading, property conditions, final closing costs and procedures. The agent should discuss contingencies with the seller and inform them that if they can be flexible on price then the closing date can be sooner. The agent needs to let the seller know they can refuse an offer but at the risk of not getting another opportunity.

I wanted to include in todays blog a review of the time period between the beginning of the home search under property and obtaining a pre-approval for a mortgage under financing to the closing.

Property

10 days – Offer to purchase and inspections, like contingencies can be done

12 days – Purchase and Sales can be fully agreed

21 days – Mortgage commit

45 days – Confirmation on the loan

60 days – To closing, all contingencies should be finished.

Closed

Financing

10 days – Make formal applications

21 days – Receive mortgage commit

60 days – Clear conditions by final inspection

Final figures through attorney – Closed.