Real Estate Consultant
Your guide to the selection and purchase of your country home is as important as a safari leader on a trek through the jungle. Therefore, select your broker carefully. The well-established, highly reputable, substantial real estate firms will relieve you of untold burdens, details and responsibilities that are part of the purchase of country property. As many personal confidences must be exchanged throughout every phase of a transaction, long, personal friendships will develop between you and members of the brokerage office.
A good broker will prove invaluable in obtaining mortgage financing, negotiating the many extras, baby-sitting with your children while you’re inspecting properties, arranging transportation and, above all, finding exactly what you want in space, acreage and price range. Most states strictly enforce laws protecting the purchasers of real estate in their dealings with real estate brokers. Further, you will generally find a high degree of professionalism throughout the industry.
It is rare that a first appointment will result in your finding your dream house. Actually, the first day spent with your broker gives him an opportunity to observe your likes and dislikes, and learn what will “turn you on.” From that day forth he will be waiting, and looking, for the listing that will satisfy your needs. A series of phone calls, letters and photographs will follow the first meeting and you’ll look forward to the next visit with great anticipation.
Viewing country properties can be a very exciting and stimulating experience. But there are certain steps that must be taken to avoid frustrating and time-consuming jaunts. First, select your brokerage firm from among names you’ve gotten from local banks, chamber of commerce offices or well-known law firms. These brokerage firms that specialize in real estate usually have well-established, full-time offices. Call or write for an appointment, describing your basic requirements. Be as prompt as possible in keeping your appointment as the brokerage office will have given a great deal of time and effort establishing appointments with owners of property they plan to show you.
Discuss the financing of your anticipated purchase with your broker, such as the amount of cash available for a down payment, and the type of mortgage you would desire. Many firms waste the time of their clients in showing-properties listed for amounts far in excess of the potential buyer’s financial capabilities or desires. Confidence must be shared. If for any reason you do not feel this confidence with your broker from the start, then change firms. Don’t be discouraged or disillusioned if you haven’t found the right place after three or four showings. The limit of time available is the main reason people become uncomfortable as they look, so try to allocate as much time as you can to these visits.
Until you have narrowed your selection to a few possibilities, it is not wise to have an entourage of friends and relatives accompany you. It’s also a good idea to have as open a mind as possible in looking for country property. Experience clearly dictates in both marriage and in property selection that you usually end up with just about what you had in mind in the first place.
The more successful brokerage firms are the ones that really “level” with you from beginning to end. You will find in the country communities that it’s much more important to brokerage firms that a new and lasting friendship is established with their client than that a deal is immediately consummated. Business survival in small communities is dependent upon reputation and referral. One bad mistake or unfortunate relationship with a client is one too many.
A most common form of making contact with a broker is through an advertisement in a newspaper or a brochure on specific types of property. Firms that consistently advertise through these media are well-established and reliable. Major metropolitan newspapers will accept advertisements only after investigation authenticates the credibility of their advertisers.
The term realtor is used extensively in identifying real estate brokers. It is a coined word which may be used only by an active member of a real estate board affiliated with the National Association of Real Estate Boards. It does not necessarily hold true that any broker not a realtor is less qualified or reliable. There may be a multitude of proper reasons to explain why he is not a member of a local board affiliated with the parent group. However, the term realtor does designate professional standing in a real estate organization of high professional standards and ethics.
There is no national policy to which brokers adhere on obtaining mortgage loans for their clients. Many firms negotiate the mortgage requested as a matter of courtesy, while others charge a fee for obtaining the mortgage for the client. The size of this fee depends upon the amount of the mortgage and the effort expended to arrange it. It is recommended that you discuss mortgages with your broker before submitting a formal application to a lending institution.
One of your broker’s chief responsibilities is to bring about a meeting of the minds between you and the seller, leading to a preliminary agreement as to general terms. He is well trained and experienced in all phases of the negotiations. You should not communicate directly with the seller of the property during any phase of the transaction without the knowledge and permission of your broker.
The fees or commissions paid a real estate broker are usually the responsibility of the seller. Therefore, the broker is not entitled to represent both the seller and purchaser, receiving a fee from both, without all parties of the transaction agreeing in advance. Although it is not a common practice, the broker can represent the interested purchaser only and be paid by him, in the event the buyer assigns him the sole responsibility of selecting a particular piece of property.
An agreement to buy can collapse when the purchaser personally negotiates with the seller on items such as furniture, tools and equipment. I have witnessed extremely desirable real estate transactions explode because of an argument over a kitchen set with a market value of ten dollars. Conclude the real estate portion of the transaction before bargaining for end tables and the rug in the hallway. If the grandfather’s clock and living-room drapes catch your fancy, advise your broker accordingly and let him be the middle man.
Before actually taking title, you will find dozens of reasons to call your brokerage firm. They will serve you well in taking care of many routine matters such as notifying the Utility company, the post office, the insurance firm, and those needing to be present at the closing.
There are always those intrepid characters who feel they can save a brokerage commission by seeking out the country property themselves, and dealing directly with the owner. Forget it. The owner will charge you the same price and keep the commission cream on top for himself. In the law profession there is a word of advice to attorneys: “An attorney who represents himself is a fool!” These wise words apply well to the idea of negotiating for property yourself, without a broker.
The broker in most instances technically represents the seller and is compensated by him. But he cannot function unless you, the purchaser, are satisfied. To this end, he will do his utmost to negotiate a fair and equitable sale between buyer and seller. Never hesitate to make a respectable offer below the listed price. It is up to you to start the transaction, letting the broker have something concrete to start negotiations with. If you are enchanted with a property and anxious to become the next owner, remember money talks. So advance a check to your broker of a nominal amount as evidence of good faith. This offer, if accepted, would be contingent upon such things as obtaining mortgage financing, good title, survey and approval of any or all contractual obligations by your attorney.
If your physical inspection of all potential possibilities of properties proves fruitless, your current broker may refer you to another broker in the community to continue your search. If he does not voluntarily do so, simply ask him to extend you this courtesy. His briefings to you of a referral broker will save you both time and wasted effort.
The purchaser of country property usually finds the broker who sold him his property continues to be one of his best country friends.