The American real estate scene is blessed with a system in which buyers have an agent as a trusted adviser on their journey to find a new home.
Your agent not only locates the most suitable properties but validates the quality of each one, organizes buildings inspections and takes on the task of negotiating the best possible price.
Overseas, many markets leave the buyer to fend for themselves, which seems inconceivable given this is one of the most significant purchases they’ll make in their lifetimes.
In America, our system works best if the buyer participates with their agent in some of the critical elements of successfully finding their dream home.
As an experienced agent, I have worked with the buyers who are either incredibly well-prepared and those who don’t engage until it’s time to negotiate.
I am convinced that buyers who throw themselves into the challenge finish the process with a higher level of satisfaction because they’ve been there for every step of the journey.
So here are nine steps that will help you work with your agent to enjoy an excellent result.
- Set your goals – Decide what type of home you want. Is it an apartment, condo or a house? Which neighborhoods appeal to you? Do you want a big garden, or will you sacrifice that for a nice view? How many bedrooms do you want? And what’s your spending limit? Square away these essential questions before finding an agent.
- Obtain finance pre-approval – You risk wasting your time without having your finance pre-approved by your lender. Many agents won’t take you on until you’ve got this in place.
- Choosing a local agent – Your ideal agent will be an expert on your target neighborhoods. They are not only able to locate the most suitable properties quickly but understand local price trends and have the experience to negotiate a great deal.
- Work with your agent – If you’ve spotted a great property, tell your agent. Don’t ring the listing agent directly. Why? Firstly, you’re doing your agent’s job. Secondly, they know how to make an approach without compromising any future negotiating position.
- Stay in your price bracket – Resist the temptation of asking an agent to look at properties that are beyond your spending limit.
- Don’t treat the internet as gospel – If you find a home on a property website, refer it to your agent. They are in the best position to confirm the relevant details and local pricing trends.
- You snooze, you lose – There are a lot of buyers in the market right now, which is why prices are rising. If you see a property you like, and your agent shares your enthusiasm, don’t delay in making an offer. For sure, it’s a big decision, but you can miss out if you wait too long.
- Bid cautiously – Your agent will tell you to never start with your highest bid. That’s just crazy. And if you see issues with the property, then factor into your bid the cost of putting them right. Your agent will make sure this is clearly explained when negotiating with the seller.
- Don’t low-ball – This is never a smart move, and especially so when the market continues to strengthen. Your agent should counsel you against this tactic, knowing the seller and their agent may consider you a time-waster, cut you off and work with other prospective buyers.