Nolo's Essential Guide to Buying Your First Home (20 page)

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Suggest neighborhoods.
Although this book helps you look for the right neighborhood, your agent should be able to pinpoint possible locations. Ideally, your agent will live in or around the area you’re interested in and give you an insider’s perspective.

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Show you comparable sales data.
To help you gauge the market value of any house you’re interested in, your agent should compile a written report (called a competitive market analysis, or CMA) of comparable properties (“comps”) that sold in the last six months.

 

CHECK IT OUT

 

You can get some MLS data on your own.
Although real estate agents get access to the full details, anyone can view portions of the MLS at
www.realtor.com
, the NAR’s consumer website. You may be able to get more-detailed MLS listings on your local paper’s website, from a local agent’s site, or by working with an agency like ZipRealty (discussed below).

 

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Find prospective homes that meet your needs.
You’ll tell your agent how much you want to spend, what physical characteristics are important to you, and what type of neighborhood you’re looking for. A good agent will search for properties that meet your criteria and show them to you as soon as they’re available. Any competent agent knows that this task may take one day or one year—in either case, the agent will patiently help you find what you’re looking for.

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Walk through prospective properties with you.
Your agent will actually take you to look at properties, too. Your agent acts as another set of eyes, helping you think about practicalities (like whether the house provides enough storage space or has an impractical floor plan), and spotting potential problems (like a water stain on the ceiling indicating a possible leaky roof, or an old plumbing system in a sparkling new kitchen). The agent might also suggest easy-to-make improvements, such as converting an unused nook into a home office space. The agent will coordinate a second and even third showing, if needed.

 

TIP

 

Don’t hire an agent who’ll push you off onto an assistant.
Illinois Realtor
^®
Mark Nash says, “Choosing a high-producing agent isn’t always your best bet, because such agents might not be available to work with you until you’re ready to write an offer. In the meantime, they’ll have a less-experienced, licensed assistant take you to look at properties. But an agent learns a lot about a client—and the client’s needs and preferences—from walking through properties together. Make sure your agent is going to take you around personally before you hire him or her.”

 

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Draft a written offer and negotiate the sale.
In the majority of states, your agent will help you draft an offer or other written statement that includes your offer price and terms. The offer process will be discussed in detail in Chapter 10. The agent will also ensure you receive any legally required disclosures about the physical condition of the property.

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Explain the process.
Your agent should (beginning at your first meeting) be able to summarize the process of and timeline for searching for homes, writing an offer, finding and applying for financing, opening escrow, checking title, obtaining insurance, removing contingencies, and closing the deal.

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Open escrow.
Your agent should open escrow for you (help begin the process of finalizing your purchase) or give you recommendations for a reputable escrow or closing company or real estate attorney (depending on which state you’re buying in).

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Manage day-to-day activities leading up to the closing.
Once your offer is accepted, you have a lot to accomplish before the deal is finalized, such as scheduling home inspections, lining up financing, and getting insurance. Your agent should guide you through each step, either handling the tasks directly or working with the appropriate professionals. Your agent should also be present for major events like inspections, the appraisal, the final walk-through, and the closing.