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Collaborating With A Seller Broker As A First Time Homebuyer March 26, 2009

Posted by minnesotarealty in MN Realty.
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It is essential to understand the steps in Minnesota home buying especially if this is the first time that you will purchase a new house. Buying a home usually involves working with a subagent otherwise known as the seller’s agent or seller broker. These agents are the ones who act as the seller’s representatives whenever closing a deal. As such, they are entitled to a commission in addition to rights and responsibilities towards the buyer.

Each state may have distinctive regulations when it comes to home buying. Similarly, the national law has certain prohibitions relative to it. As suggested by the author of the book “100 Questions Every Home Buyer Should Ask”, home buyers must make an effort to read thoroughly all the documents such as agent’s forms and disclosures before signing to fully understand the services being offered. There are several things that a seller’s agent may or may not be allowed to do in your favor:

The seller’s agent can present you with complete price lists of homes within your preferred area or location. “Comps” pertains to a compilation of similar homes in a particular area, the list prices, and listing information. The seller’s agent typically provides a ‘comps’ to ensure that a reasonable price is agreed upon during the negotiation process.

When you are still deciding, the seller’s agent cannot give you hints on what home to choose. The seller’s agent has the primary task of selling the home that is commissioned him to deal. However, he cannot insist or even suggest what home you should purchase. In the case that you like two properties and it happened that the subagent works for both sellers – you cannot be persuaded to select one over the other. In other words, only you have the power to decide.

The seller’s agent cannot point out defects in the home. The seller broker cannot say anything that would influence your decision to purchase, or not purchase the property. Any material hidden defects can be disclosed, but you will need to conduct your own research to find out if the home is in good condition.

The seller’s agent cannot make suggestions on the best offer for the home. It may be tempting to ask the seller what price you should pay for the property, but they cannot legally offer this information at any time during your communications. The seller broker has certain obligations to the seller, so this information may impede on that relationship.

The seller’s agent can ask you for referrals. Many seller’s agents are independent business owners and always looking for new clients. They do have the right to ask you to refer them to friends or family members, and will do everything they can to make your home buying experience a good one.

In home buying, it is essential to remember a few important things. It is a fact that seller brokers facilitate the home buying process. However, this does not always translate to giving you all the benefits in the purchase of your new home. So it is necessary that you conduct your own research and find a Minnesota real estate agent who can assist you or help you address your home buying concerns.