A realtor is working for the best interest of the client he is representing, either the buyer or seller.
When representing a buyer, the primary responsibility of a realtor is to make sure the buyer gets the house that satisfy all the housing needs of the buyer at the lowest possible price. There are various analysis tools available only to a realtor that would help analyse the market trends and help determine a price range that would win an offer for a house. A realtor will guide the buyer thru out the home buying - namely showing the matching properties, preparing comparative market analysis report for bidding a home, help getting Financial Pre-Approval, Home Inspection, negotiating price with the seller, negotiating for the repairs with the seller etc., till the closing of the house.
When representing a seller, the primary responsibility of a realtor is to secure the highest and best price, for the house being sold. There are various marketing and analysis tools available only to a realtor that would help market the house with a right price and to the broad range of buyers. A realtor will help the seller to make informed decisions by analyzing the pros and cons of all the application offers received for a house. The best offer for the house need not be the offer with the highest price. The realtor will review all the offer applications and also talk to buyer's lender to confirm the loan eligibility of the buyer. During the entire transaction process, the realtor will work the Title Company, the buyer's agent, lender etc., and provide regular update till the successful closing of the home.
No. We will try our best to avoid this conflict of interest situation. In the event, this becomes unavoidable, we will disclose and discuss the options (like having intermediaries) to both the seller and the buyer and have a resolution that is acceptable and approved by both the buyer and the seller.
It depends. We will resolve this on a case by case basis.
The primary goal of SAI Residential Realty is to be transparent with all our clients. When the housing requirements (say City, Price range, School District etc.,) for a new client buyer, happen to be same as that of an existing client buyer, we will inform the new client buyer about the conflict.
If the new client is okay continuing with this conflict with the same sales agent within SAI Residential Realty, our sales agent will disclose this conflict to the existing client buyer to make sure the existing client buyer appoves the same. If the existing client buyer doesn't approve, the new client buyer will have to be reassigned to a different sales agent within SAI Residential Realty or we will have to kindly request the new client buyer to a different real estate agency.
There will be numerous homes coming to market every week. The probability that multiple buyers that are serviced by the same sales agent will like the same home and make an offer for a home is probably less but is possible. In such an event, we will resolve the conflict in one of 2 ways. a) The original sales agent will service both the buyers during the bidding process and will make sure the offer details of each buyer remains confidential and be unknown to the other buyer. b) we may temporarily re-assign one of the client to another sales agent depending on availability within SAI Residential Realty for the bidding process. If one of the buyer wins the home, the temp sales agent will be working with the client for the remainder of the buying process.
Buyers: Yes. The transaction should be successfully closed. The rebate % given below is on the prerequisite that the listing agent pays the normal 3% commission to the buyer agent. This commission information will be provided in the MLS listing.
Full Cash Transaction: 2.5% cash back at closing.
Mortgage Transaction: up to 1.5% as realtor credit towards closing cost.
Condition #1: The cash back rebate will be disclosed in the Special Provisions section of the offer contract and Seller/Seller Agent should not raise objections to the cash back/rebate to the buyer.
Condition #2: In case of mortgage transaction, the lender/underwriter will enforce the federal laws/guidelines for the maximum relator credit the borrower can get from the buyer agent.
It is the responsibility of the buyer to work with the lender institution to avail the realtor credit to the maximum limit of 1.5%.
IMPORTANT: WE WILL NOT DO ANY CASH BACK REBATE OUTSIDE THE CLOSING.
Sellers: There is no cash back, as such, but the commission details are always negotiable with the sellers during the time of listing agreement.
No. We do not recommend buyers to any particular lender. We work with any lender of buyers choice. When our clients are looking for lenders, we will provide the list of lenders that we have worked in the past or that we are aware of in the surrounding neighborhoods. But, we always recommend our clients to shop around for the best deal and choose the lender that they are most comfortable with.
As getting Pre-Approval letter involves the disclosure of personal & confidential information (like SSN, Salary etc.,) of the buyer to the lender, it becomes the responsibility of the buyer to get the finance Pre-approval letter. We may provide the list of lenders that we have worked in the past or that we are aware of in the surrounding neighborhoods. The buyers need to work with their lenders of their choice to get the pre approval letter.
The lender will give the checklist of items that buyer need to furnish to the lender.
Here are few common items that usually appear in the checklist for the lender (but not limited to, could be more).
- Verification of your employment
- Pay check Info for the last couple of months
- W2 for the last 2 to 3 years
- Federal Tax filing/returns for the last 2 to 3 years
- Bank statements for the last 2 to 3 months
- Copy of your drivers license
If all checklist documents that the lender is looking for is readily available from the buyer, most lenders would make a decision on loan approval with in 3 to 4 weeks. (Even 2 weeks is feasible).
Yes. Most lenders do.
When our clients are looking for lenders, we will provide the list of lenders that we have worked in the past or that we are aware of in the surrounding neighborhoods. The buyer need to work with the lenders and select the lenders of their choice.
We will also educate our clients with the different types of mortgages (15 yr-Traditional, 30 yr-Traditional, 5/1 ARM etc.,) available to the buyers. We will also guide them with the current interest rates in the market. The mortgage type and the lender the client choose is purely their decision. We do not influence one way or the other.
No. We legally should not provide any tax related advise. We will request our clients to consult a CPA of their choice.
No. It is illegal for us to provide any legal advise. We will request our clients to consult a lawyer/law firm of their choice to address any legal questions or issues.
We adhere to promulgated forms approved by TREC, TAR or NAR. In the event, the seller supply their own form (preferrably approved by a lawyer) we use them at the insistence of the seller.
We will provide the list of home inspection companies that we have worked in the past or we may provide the list of home inspection companies we are aware of that are servicing the area. Its up to the buyer/seller to choose the home inspection company of their choice.
Its either the buyer or seller, who ever is requesting for the home inspection.
Its up to the buyer, but we always recommend the buyer to do the home inspection during the option period, to avoid any issues at the later stage of the transaction.
Seller: Its better for the seller to do the home inspection and make necessary repairs before the house comes to market.
Buyer: Once the acceptance of offer is communicated from the seller to buyer, the buyer need to immediately schedule a home inspection and all needed repairs should be communicated and accepted by the seller formally, using a contract amendment form, before the option period expires.
It could range from $350 to $1000, depending on the size of the home and some features of the home like sprinkler system, pool etc.,
Usually, home inspection companies do not do repairs in general. During the walk thru after the home inspection with the inspector, if asked, the inspector may give a rough idea as what it may cost to do the repair but they are not official quotes.
The neccessity of temite inspection increases with the age of the home. Most home inspection companies perform termite inspection at an additional fee. Some home inspection companies don't do termite inspection. Please check with the company when you schedule an appointment with them.
The seller. If there are any questions by the seller in completing the SD form, we may address them on a case by case basis. The seller must take the ownership of filling the SD.
Option period is usually a brief time period (usually 5 to 10 days as specified in the contract), after the acceptance of offer is communicated to the buyer, during which the buyer can walkout of the contract unconditionally except the loss of option money (usually between $100 to $500, depending on the offer price). During this period, the buyer completes the home inspection process and all needed repairs has to be communicated to the seller using a contract amendment.
NO. NO. NO. We do not get kick backs or referral fees from any of the vendors (like the lenders, home inspection companies, title companies etc.,) during the home transaction process. It is illegal to give/receive any kick backs.
Home Appraisal is the process by which the market value of the home is determined. By default, the lender will do an appraisal as the first step in the loan approval process to make sure the house being mortgaged get appraised at least to the offer price. (If the appraised value is more than offer price, it is okay. That will mean the buyer really got a good deal).
If the buyer buys a home with all cash, i.e., with no financing/morgtage, it is recommended that the buyer better do an official appraisal to make sure the offer price is not above the appraised value.
If Lender/Mortgage is involved: The lender will not approve the loan. This is one good example, where the financing contingency will protect the buyer to break away from the contract with no loss (expect for the option money which is always unprotected for the buyer). The options to the buyer and seller in this scenario are as follows:
a) The seller can accept the appraised value as the offer price.
b) The buyer can pay by self, the difference between the appraised value and the offer price.
c) The seller and buyer can renegotiate the offer price and find a common ground that is acceptable for both.
d) The buyer backs out of the contract with no loss except the option money.
Depending on the market condition (buyer's market, seller's market, neutral market) any of the above option could happen.
When we represent the buyers, our goal will be to work for option (a) but we more likely settle with (c). The worst case will be option (d).
When we represent the seller, our goal will be to work for option (b) but we more likely settle with (c). The worst case will be option (d).
If Lender/Mortgage is NOT involved: There is relatively less options for the buyer here, unless, there are provisions written in the contract that the home need to be appraised to the offer price. If the appraisal could be done within the option period, there is a chance the offer price could be renegotiated with the seller. Outside the option period, the buyer has very little to no option unless specified anything in the contract.
Usually the seller will buy the home warranty for the buyer, if written in the contract. At the client's request, we may provide the list of home warranty service providers. It will be our client's decision to choose the home warranty service provider of their choice.
SAI Residential Realty, a real estate agency/realtor in Plano, TX primarily serve all the cities in the Collin county and part of Denton county. When requested by clients, we do serve all parts of the Dallas Fort worth (DFW) metroplex.
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