Buyer Agency Explained

When buying a home, you may work with a real estate agent in one of two ways:

  1. As a Customer - with a sub-agent of the listing broker, who works for the Seller
  2. As a Client - with a Buyer Agent, who works only for you (by signing a Buyer Agency Agreement)

Here’s what you can expect:

A Buyer Agency Agreement:

  • Establishes your relationship with your real estate agent as your Buyer Agent (on behalf of their broker)
  • Can be arranged for any amount of time
  • Describes the duties of your real estate agent to you (see above)
  • Describes your obligation to participate in the transaction as the Buyer (contact your Buyer Agent to see a property, schedule inspections, sign paperwork, work exclusively with your Buyer Agent, etc)
  • Only costs you money/obligates you to a commission if the Seller does not offer the commission (which is rare + typically only comes up with a For Sale by Owner…even then, you can ask Seller to pay it as part of your offer)
Home Loans & Preapprovals

Most sellers require a preapproval letter with any offer. It’s best to have a preapproval letter before you begin showings.

Lenders worth calling:

You have your choice of lenders & they’re all a little different, so shop around! Please ask your agent for a list of our current preferred lenders.

Your lender is your financing expert, ask questions!:

  • How in depth is their preapproval? (The more info they get at the beginning, the closer you are to loan commitment)
  • What are the estimated closing costs?
  • Are there any discounts, credits, or first-time homebuyer benefits?
  • Can they be reached on a weekend if you need a preapproval update or have questions?

Be prepared! You’ll have to provide:

  • Recent paystubs
  • W2s (last 2 years)
  • Tax returns (last 2 years)
  • Bank statements
  • Debts (credit cards, loans, student loans, etc.)

Take their advice!

Don’t make any financial changes after preapproval (new car, opening or canceling a credit card, etc. could ruin your ability to get a home loan).

Your Home Search
  1. Shop Online
    1. MLS search portal & KW app from your agent - star your favorites
    2. MLS homes email updates from your agent (opt in)
    3. Other search sites
  2. Share with your agent
    1. Text addresses to your agent & they will send you more information (condition report, tax info, etc.
      1. Even if the home has an accepted offer, it’s good to share what you like so your agent can focus in on the features of your ideal home
      2. Re: open houses, tell your agent if you plan to attend one (so they can join you); if you go without your agent please let the listing agent know that you’re working with A Key Home Team
  1. Schedule Showings
    1. Choose homes - 2 to 5 that you’d like to see in person
    2. Plan ahead - ideally 24 hours minimum before the showing
    3. Contact your agent - send addresses and days/times you’re free in the next few days (9 a.m.-8 p.m.)
    4. Schedule showings - your agent will do this for you & send a confirmation
      1. Keep in mind, the seller often lives in the home, so please consider them when choosing times, scheduling last minute, and cancelling showings
  2. Showings
    1. Helpful Tips:
      1. Take a bathroom break before showings
      2. Bring snacks & water
      3. Wear comfortable shoes that can be removed easily (or ask your agent for shoe covers)
      4. Plan for about 20-40 minutes per house
        1. Please wait for your agent to arrive before walking around the home, even the outside!
    2. During the showing:
      1. Picture yourself living in the home - the flow of the rooms, the space you need for daily activities, areas you use most often (consult your Needs/Wants/Wishes chart)
      2. Look past the “stuff” - furniture, paint colors, etc.
      3. Avoid using the bathroom in the home or touching seller’s property
      4. Share your thoughts with your agent & ask questions
      5. Your agent will also point out some areas of concern (though your home inspector is the true expert in that regard)
Home Features that Affect Price
  • Location
    • City/Municipality
    • Busy or quiet street
    • Corner lot
    • Close to neighbor
    • South-facing
    • Near an apartment building
  • Size
    • Square feet
    • Number of bedrooms/bathrooms
    • Yard size
    • Garage size
    • Storage
    • Bonus rooms
    • Room sizes
  • Condition
    • Updated kitchen
    • Updated baths
    • Old carpet
    • Wallpaper
    • Dirty
    • Vintage tile
    • Windows
    • Roof
    • Mechanicals

If price remains the same ($200,000 in this example), then these 3 features must adjust

(i.e. a prime location may mean a smaller home, or a completely remodeled home may be in your 2nd or 3rd choice of location)

Offer to Purchase - Quick Reference

Property Address: [address]

Buyer: [buyer name(s)]

Selling Agent: [agent name]

Contact Info: [agent phone number & email address]

_________________________________________________________________________________________

OFFER DETAILS:

  • Purchase Price - [$]
    • [% down payment]
  • Seller, please reply by - [date]
  • Earnest Money - [$]
  • Closing Date - [date]
  • Contingencies [if applicable]
    • Inspection - [# of days, right to cure?]
      • [include repairs coverage $ if any]
    • Financing - [# of days, lender name/institution]
    • Appraisal - [# of days, right to cure?]
      • [gap coverage $ if any]
    • [include any other additional provisions]

_________________________________________________________________________________________

ENCLOSED ATTACHMENTS:

  • [offer to purchase, any addenda, preapproval, miscellaneous docs]

_________________________________________________________________________________________

Home Buying: Step-By-Step

You’ve found a home that you love...now what do you do?

  1. OFFER –

    1. Contact your lender - if updated preapproval is needed
    2. Write offer to purchase (with agent in person/via Zoom - see Offer Quick Reference)
    3. Counter-offers may occur (with agent in person/via Zoom)
    4. Accepted offer!

  1. IMPORTANT DATES SHEET –

    1. Receive Important Dates sheet from team admin
    2. Accept calendar invites from agent or put dates/deadlines into your own calendar
    3. Follow “what’s next” steps immediately (schedule inspection, contact your lender, deliver Earnest Money)
  1. INSPECTION(S) --
    1. Coordinate date/time with your agent and schedule inspection with inspector (either via their website or by calling)
    2. Confirm date/time with agent, who will confirm with sellers/listing agent
    3. You, Sai, + Inspector Will Attend Inspection (Plan for 2 to 3 hours)
    4. Inspector Sends You a Report within 1 to 2 Days (Forward to Sai)
    5. Discuss Options with Sai + Complete an Amendment Requesting Repairs/Price Change/Closing Credit/Warranty or Possibly Notice of Defects to Exit the Contract
    6. Negotiate with Seller Until Agreement (Proof of Repairs Prior to Closing)

  1. LOAN COMMITMENT PROCESS –

    1. Order Appraisal - Contact Your Lender (Usually After Inspection)
    2. Appraisal Report Received by Lender + They’ll Let You Know Results
    3. If Appraisal Comes in Under Purchase Price – See Sai for Amendment Requesting Price Change From Seller or Possibly Exit Contract with a Notice
    4. Order Home Insurance (See Sai for Contacts if Needed)
    5. Loan Commitment Should Come Through, so Long as No Major Financial Changes Have Occurred for You or the Lender
    6. Loan Commitment Issued – Forward Copy of Loan Commitment to Sai

  1. TITLE –

    1. Title Company of Seller Does Title Exam, Title Insurance for You, Title Commitment, Closing Statement
    2. Title Company for Your Lender Will Also Put Together Documents for Closing
    3. Please Review All Documents You Receive From Title Co + Fwd Copies to Sai
  1. UTILITIES – Call 1 Week Prior to Put Utilities in Your Name starting Closing Date (WeEnergies)

  1. CLOSING STATEMENT-

    1. Sent by Email From Your Lender (3 business days prior to Closing)
    2. Review The Document Carefully + See Your Lender With Questions/Concerns, Fwd Copy to Sai (Changes May Require Additional Time + May Push Back the Closing Date)

  1. SCHEDULE CLOSING & FINAL WALK-THRU –

    1. Schedule Walk-Thru and Closing Time, + Location with Sai
    2. Closing is Usually at Keller Williams office, your lender’s office, or title company between 9am and 4pm for about 1 hour (week day)
    3. Sai will Coordinate Walk-Through and Closing with Sellers, Lender, + Title

  1. FINAL WALK-THRU –

    1. Re-visit Your New Home with Sai - Within 3 Days of Closing to Ensure Repairs Were Made + Nothing Major Has Changed (Also a Good Time to Measure Rooms)
    2. Problems? A Change May be Negotiated…Which Could Push Closing Back 3+ Days

  1. CLOSING – Plan about 1 hour

    1. Bring Your ID, Cashier’s Check or Wire Transfer Confirmation & a Check Book! Sign Closing Docs + Receive Keys, Garage Remotes, etc
    2. CELEBRATE!

  1. FOLLOW-UP –

    1. REVIEW: Write a short review of your experience with Sai (You’ll receive an email just before closing) - Thank you for your time!!
    2. Share Sai’s Contact Info with Anyone Looking to Buy or Sell a Home ☺
    3. Prepare to Hear from Sai on Occasion – Facebook Client Community, Checking in to See How You’re Doing, and snail mail
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