Buyer’s Choice Realty blog

What is the team approach? All I need is a decent agent and I’ll find a good home and be all set, right? Only in rare cases.

When thinking about buying a home, consumers are often unaware of the complexities involved. Here are the players that should be on your team:

1. An exclusive buyer agent (EBA). This type of agent will work in an office that does not take listings. Why? No potential conflicts of interest. They will put your interests first. An EBA functions as the ‘quarterback’ of the team, helping to find other members of the team and keeping everyone on the same page with effective, timely communication.

2. A qualified, thorough, licensed home inspector. In Massachusetts, only buyer agents are legally allowed to recommend a home inspector. Knowlegeable exclusive buyer agents will often recommend only a select few inspectors, for numerous reasons. They will have worked with each inspector in the past and will know that they will put in the time necessary to find any previously unknown problems in the home, which will save buyers money. Many large firms only allow their ‘buyer agents’ (agents that are designated for that transaction only to work for a buyer) to give a lengthy list of home inspectors so as to avoid liability.

3. A real estate attorney. Agents that are also attorneys pose some problems for clients. Sure, you may get a discount on services, but being an agent and being an attorney are two full-time jobs. Will they get the job done to your expectations? Good agents will be able to tell you attorneys they have worked with in the past, much the same as finding an inspector.

4. A lender/loan originator. Again, firms that offer in-house financing may not be in your best interest. Will the agents in that firm push you to get a loan from the finance officer that they work next to? Of course. You, the consumer, should not be pressured. An agent with no connections like that will be able to tell you what to ask a potential lender or a loan originator, and will help you understand some of the complexities involved in finding a good loan. Again, they will have worked with honest, ethical lenders in the past and will know who offers the best rates and terms. Junk fees can be avoided.

5. A home insurer. The same applies to this person. Solid agents will know who is honest and efficient, as well as who sometimes is not as good. Insurance is so important, especially since most home buyers are making the biggest financial purchase of their lives, and they need and deserve to know that they and their purchase will be protected.

With these five teammates on your side, your home purchase is sure to become a little bit less overwhelming, and maybe even a little fun.

Are you a first time buyer? Have you not bought in a long time? Do you have questions about how you can save money in this buyer’s market? Well my goodness do we have something special for you.

Join us at Countrywide’s Peabody branch on 202 Newbury St. on Route 1 south on May 20th. I promise you won’t be disappointed. The program starts at 7pm and will run until 9 or so. You can reserve a seat by calling 978-536-1313. This free program is sure to be valuable to you if you are thinking about buying a home in the next 6-12 months or just want some questions answered.

What will be covered? How to buy foreclosures, negotiating tips in this market, determining how much to offer, how to buy with little or no money down, problems to avoid when buying, home inspection tips, and information for veterans on VA loans. If you have any questions, feel free to attend and pick our brains.

A real estate attorney, a member of the buyer broker hall of fame, and loan consultants with experience in home repair/rehab loans, credit repair, and government loans will all be presenting. Hope to see you there!

Inman News recently featured an article entitled, “Ethical Home Inspector Loses Referrals”. It focused on real estate agents who are more interested in their commission than recommending a thorough, experienced home inspector who may uncover defects that could give reason for renegotiating or at times withdrawing from the transaction. A home inspector named John says, “I’ve inspected homes in the Midwest for more than 15 years and have performed more than 7,000 inspections. My reputation for thoroughness is widely known among local real estate agents, but this has not been good for my business. Instead of referring me to their clients, most agents have labeled me as a “deal killer.” The inspectors they prefer are not nearly as experienced or qualified and tend to miss many of the defects that I routinely include in my reports.“While it may be somewhat understandable that a seller’s agent would not want to recommend an inspector who may “kill the deal”, it is imperative that a Buyer’s Agent is recommending a thorough home inspector.  In Massachusetts it is illegal for a seller’s agent to recommend a home inspector to a buyer because of the evident conflict.  Only a buyer’s agent may recommend.  That clearly makes sense from a fiduciary perspective. 
 Our company has been recommending specific inspectors with a proven track record for years.  But today, most of the agents in our state are designated buyer’s agents.  Many are told they may not recommend a specific inspector.  If they are going to recommend at all, they need to provide a list of inspectors for the sake of risk management.  Consumers should know that a good buyer’s agent will not hesitate to refer specific inspectors who will do the best job.
Barry Stone, known as the House Detective, is the author of the article.  Barry says, “The highest expression of true representation is to provide total, complete and unabridged disclosure. When a buyer asks an agent to recommend a home inspector, the actual question, regardless of how it is stated, is “Who is the best home inspector available?” Agents who recommend someone they do not regard as the best are not representing the client’s interests and are thereby guilty of misrepresentation.  I say Amen to that.

Barry also maintains that even seller’s agents should think carefully about making a poor home inspection referral.  He points out that every defect that is overlooked by a marginal inspector is a potential lawsuit at some time in the future, and such suits are commonly filed against agents who compromise the interests of their clients. 
In a perfect world agents would recommend good inspectors.  But given the world we live in, a buyer is smart to pursue this question with diligence.  Typically, an Exclusive Buyer’s Agent is willing to go out on a limb to recommend an exceptional home inspector.