As a top Ascension Parish, Baton Rouge and Gonzales real estate expert, it's my job to help! Please take advantage of my experience and knowledge. Our biggest questions have been about the Buyer's Specialist. It's what most Agents don't want you know!
Ask me anything about:
- Any particular home that is or was on the market.
- Neighborhoods and local market trends.
- Local demographics and the economy.
- Tricks and traps when buying real estate in this area.
- Special tax considerations regarding real estate.
- Specific questions about contracts, escrow, and closings.
- Anything real estate!
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FAQs Answered By Regina Harp
Why Do Agents Want You to Go to the Bank First?
The reason for an agent telling you to get pre-qualified is so that we can see what you can afford, see what the credit report says, and it saves everyone time. You'd be surprised how many of my clients are surprised when the credit report comes back with problems on them. The quicker we do this, the quicker we can address the problems on the credit report. Another reason for being pre-qualified is so we don't waste time by looking at homes you can't afford. If you "want" a $150,000 home, but can't afford it, then we don't need to look at that. If you can't afford that size home, do you still want to purchase a home or wait for your financial situation to change? Getting prequalifed can answer many questions for you and your Realtor.
What is a Buyer Agency Agreement? Do I have to do this?
This is an agreement between the buyer and the Realtor stating that she will represent the Buyer's interests in the purchase of your new home. The listing agreement for Sellers says the Seller is represented by the listing agent and agrees to pay (i.e.) 6%+ commission (3% for the listing agent and 3% for the buyer's agent).
Therefore, the seller or builder are the ones who are typically responsible for the commission being paid to the buyer's agent and seller's agent. It's a win-win situation for the buyer.
As your Buyer's Agent, we can represent you exclusively as a buyer. We can then help you compare all available properties, both new and resale, and help you decide what price you should pay for the property. As a rule, our policy is to have The Buyer Agency Agreement filled out before any of our Team shows a Buyer a home.
What is a Home Warranty and why do I need it?
The home warranty is a one-year warranty that you can purchase on the new home to warranty certain problems that may arise. I do recommend that everyone purchase the warranty, which on average runs about $395. Most warranty companies require that you get your home inspected by a certified inspector first to see the condition of everything on the home.
As a Seller, this will allow you make repairs you need to make on the property before it scares off a Buyer and kills a contract. Knowledge is power when you know the exact condition of your property. It will save you money if you address the issues on the inspection before the buyer offers a contract.
As a Buyer, this will allow you to make sure all of your major components are in working order before you purchase the home. If a major component of your home, such as the A/C unit, has a problem, the warranty covers certain things (refer to each warranty policy for specific details). We have had buyers move into a home and have the A/C unit die after only one month of being in the home.
I'm a First Time Buyer; how do I get started?
The first thing you should do is call our Team to get a First Time Buyer's Kit. The Kit will take some of the confusion out of this. Then make an appointment with our Team and we will sit down with you and explain everything from the loan process to the closing of your home.
After choosing your Realtor, get prequalified with a mortgage company. I recommend Robert Phillippe, 225-802-6419. Then look at homes with your Realtor. If you ride around by yourself to see open houses, tell Owners and Agents that you have a Realtor. Don't ever discuss your motivations and finances with other Agents and Owners. The other Agents that you will encounter are representing the Seller's interest, NOT yours. If you let them know you've got extra money, can do this or that, and then WE go in to do a contract on the home, you have lost some of your negotiating power by letting the Seller's Agent know that you will get this home no matter what.
The Listing Agent Wouldn't Show Me The House?
I called on a house I was interested in and the agent wouldn't show me the home, why?
I can't think of a reason why a listing agent wouldn't show you the home unless you weren't prequalified. As a rule, I don't set appointments for a seller's home, ask them to pack up their children, and leave their homes for a few hours for an unqualified Buyer.
Another thing that happens is a Buyer calls and wants our Team to show them a home and they have too much information...usually indicating that the Buyer has an agent they are already working with.
If I suspect that you are working with an agent or worse four agents, I can't afford to do your agents work for her. My services are a given to any "Seller or Buyer Client" who is loyal and committed to me and my Team. Just as you have to work for employers who are loyal, dedicated, and committed to paying you every week, I too have to be compensated for my services and hard work.
Help, I'm in a Builder's Contract and the Builder isn't doing what he said he would do, what do I do?
If sitting down with you Builder isn't working, then perhaps you should contact your attorney to advise you.
I get calls like this all the time AFTER the contract is done with a Builder, For Sale By Owner, and other contracts for lease or purchase. There is nothing that I can do for a Buyer at this point. BEFORE you get into ANY contract it is in your best interests to hire a Realtor or an Attorney to protect YOUR interests in the transaction.
What does a Buyer's Agent do for me?
A Buyer?s Agent uses her time and expertise to search all available properties for sale, make appointments to show them to you, finds out all pertinent information regarding comparables to help you make an offer, negotiates the offer, completes all contracts and legal paperwork, and then follows up, tracks the file from inspections to appraisals, to lenders, from pending to closing, to moving day.
How do I hire a buyer's agent?
Call 800-518-3559 or 225-744-HARP or email Regina Harp & Team and ask one of our associates to assist you! We can help you find the right house, for the best price, in the shortest length of time, and with the fewest hassles. When you work with a Buyer's Specialist from Regina Harp & Team, you have the support of an entire team of professionals!
ALL AGENTS ARE NOT CREATED EQUAL!
Dear Regina: We are thinking of selling our home and all of the agents we are talking to tell us different things about advertising our home, what's your opinion?
Times are changing in how we do Real Estate today. The time of Brokers paying for all marketing and advertising on the Seller's home is just about gone. The Listing Agent used to be able to take a listing and then the broker would do all advertising on the Seller's home and be responsible for the marketing of the home.
It is predominantly becoming the Listing Agents responsibility to market a sellers home now. That's why it is so important for Seller's to ask the agents they are interviewing what do They do to get buyers into their homes. If they start talking about MLS or the Broker and what they do, I guess you have your answer; they are not going to spend any money on marketing your home. Now ask yourself this, "Do I want to pay professional fees to THIS agent or another agent who gives me more?" Most Expired or Withdrawn Sellers tell me they hired their Agent because she was nice. Do you really want to pay someone thousand of dollars for being nice or pay someone for professional services based on what they can provide to you?
Agents who are just starting off typically don't have the money to advertise like an agent who is selling over 75 homes a year. Do you need to advertise? YES! Buyers don't just trip over my Seller's homes; our homes are heavily advertised to get buyers to view our homes first!
Should I work with the Builder's Agent?
BUYERS BEWARE OF THE IN HOUSE PERSON WHO REPRESENTS THE BUILDER!
It's a beautiful day and you and your family decide to go out and see a few open houses! Then you see the signs to a New Subdivision and decide to drop in to check out the new homes.
You are then greeted by a person who is sitting in a "Model Home" who is kind enough to show you everything that is available and all of the plans and "options" to build in this development. You are thinking what a sweet person, and they are telling you everything that "the builder" will accept. Have you ever wondered if the sales person is representing THE BUYER?
Did they tell you OR show you in the MLS system, our Realtors database, what recent homes were selling for or have sold for? Most in house sales people represent the builder alone, NOT the buyer! They typically won't show you what they REALLY sold homes for in the neighborhood or how much closing costs the builder was REALLY paying. Other builders are representing themselves as their own agent which benefits their pocketbooks. And not all of them are disclosing this either!
A Buyer Specialist makes the same money no matter where the buyer chooses to go because they don't work with Sellers to get the other half of the commission, like a dual agent. Hire your OWN Buyers Specialist and get represented by someone who ONLY has YOUR best interest in mind!
BEWARE OF HOMEPAGES BEING PASSED OFF AS WEBSITES
Dear Regina: Most agents have websites and I think you have one of the best. But why do you say that not all of them are websites?
Most are carrying web pages they are "claiming" to be websites. There is a HUGE difference! My website sits in the Top 5 of most major search engines because I pay lots of money to have my Seller's Homes Seen First, which is very important.
The biggest sign of the agent having a Website is they can show you the statistics of the Visitors and Requests to their website, as well as where each buyer visited on the website. If the Agent can't provide this information, chances are they have a homepage, lost in some black hole on the internet and never seen by the buyers who do searches on the internet.
How Do I Choose My Agent to Sell My Home?
SELLERS BEWARE... ANYONE CAN BUY A NAME, BUT FEW CAN MAKE A NAME FOR THEMSELVES!
Seller's need to ask hard questions of the Listing Agent, just as you would a heart surgeon! This is most Seller's biggest financial investment. Don't take that lightly. How many homes did the Realtor sell this year? How long are their homes on the market? Where are they ranked in the MLS system for market penetration and sold homes? You need to know the agents track record. After all, you are paying this person a professional fee, shouldn't you ask to see their credentials?
Another thing Seller's assume is that ALL agents are Full Time. That is overwhelmingly false! If your agent isn't working full time, they aren't spending 100% of their time working to sell your home and they typically can't afford to pay the marketing dollars it takes to sell it quickly either!
Out of over 1800+ Realtors in 10 Parishes, only half (925) of those Realtors have ONE home listed. And Only 240 Realtors have more then 3 Homes listed! And when you look to see how many Realtors have more then 10 Homes on the market, the number plummets to 51! When you look at Realtors who actually sold a home in 2003, their were ONLY 210 Realtors who sold over 20 homes and ONLY 79 who sold over 35!
Then we have the Franchise names Agents can pay for and have the Sellers assume that they are getting the BEST of the best. Wrong again.... Out of the top 50 Realtors who sold homes in 2003, less then 1/4 of them are with the leading National Franchise.
And that brings us to the false assumption that the Greater Baton Rouge Board of Realtors MLS Sells Homes? Not by my calculations! It appears that Top Agents are selling homes. Our MLS just gives you more exposure to the Realtors who ARE working full time though.
Sellers, do you see the need to start interviewing Realtors now AND asking some hard questions of the Listing Agent's Track Record? Ask to see their numbers in writing and on paper, it is your right to know! 01/04
SELLING YOUR HOME YOURSELF....
Dear Regina: We are thinking of selling our home FSBO (For Sale By Owner), but all of the agents we are talking to says that it's a horrible idea and it won't sale and we don't know all of the paperwork involved. You pulled our comparables for us and we want to know your opinion?
I say TRY it! You have nothing to lose to try and sell your own home for about a month or two. After a month or two, For Sale By Owners typically won't be able to sell the home on their own because they don't do all of the marketing and advertising that a Marketing Agent and Seller's Specialist does. BUT, if the home is in a hot area, you could sale it in a few weeks and save the Realtor fees.
A lot of my past clients tell me they had no idea how much I did until they bought or sold a home with me. It is true that we have a lot of paperwork and disclosures that we have all parties (buyers and sellers) sign, so that they understand their rights in the sale of a home. And if you have the time, then I say, GO FOR IT for a few weeks!
If you aren't successful, then be sure to hire an agent who did MORE then you did. Don't hire someone who will only put a sign in the yard, make flyers for the yard and advertise it every now and then in the newspaper. If it didn't work for you, why would it work for an agent who isn't spending money on marketing your home?
SELLERS BEWARE OF PAYING AN AGENT TO REPRESENT THE BUYER!
Are you willing to pay an agent who brings you a buyer on your For Sale By Owner home? Did you know that you, the Sellers, are NOT being represented that way?
When an agent brings you a buyer, they typically will have you sign a single listing agreement that says the agent ONLY represents the buyer. Why would you want to pay for the BUYER to have representation, instead of paying for yourself, the Seller, to have representation? If the agent works for the buyer, then they will not be representing the seller's best interest. An agents client is someone who has signed a legal contract to have representation in their best interest. With a legal contract signed with a buyer, an agent is legally obligated by the rules of The Board of Realtors and the laws of The Real Estate Commission to represent this buyer as their sole client. We are required to ONLY represent them unless we have written permission for dual agency (an agent who has knowledge of buyer and seller and represents both parties on the SAME property as legal clients), so where is the Seller's representation in this situation?
Regina Harp, a Seller's Specialist, is willing to assist the Sellers in the transaction and paperwork, on their For Sale By Owner homes, for a consultation fee. Please call Regina Harp if you have any other questions.
ALL SELLERS MUST GET A PCD SIGNED
Dear Regina: We heard that we have to give a PCD (Property Condition Disclosure) to a buyer on our property. Is this going to be required now?
Yes, from what I understand, soon ALL Sellers will be required to give a copy of a PCD, that is filled out, to any buyer who makes an offer on their home. It must be filled out to disclose any problems that you have or have had repaired on the property since you've owned the home. This includes anything that was disclosed to you when you purchased the home as well. The PCD, when signed by the buyer, is written evidence that the buyer had knowledge of a condition or defect, which can prevent them from suing on the matter. Not disclosing all defects, etc. to a buyer can put the Sellers at risk of having the sale rescinded; meaning you would have to take your home back because the buyer did not understand what they were buying and perhaps would not have purchased the property had they known.
WHY BUYERS NEED A BUYER'S SPECIALIST ON THEIR SIDE! Don't Buy A Home Without Someone On Your Side!
Buying a home is one of the biggest investments you'll make. Don't you need someone to help you and work in your best interest? In short, a good buyer specialist is the best investment you'll ever make AND the commissions are already set in the MLS system for the seller to pay YOUR Buyer's Agent! That's right, the buyers typically pay nothing to have someone on your side!
A Buyer Specialist can advise you on the pros and cons of the property. They give you an unbiased view of the house's value because they ONLY work for YOU, the buyer. They never work with Sellers and they don't make double commissions, therefore never pushing a home on a buyer that is not in the buyer's best interest.
A Buyer's Specialist will pull a Competitive Market Analysis on sold homes surrounding the home you want to make an offer on. They represent YOU in negotiations with the seller, while working out the best deal for YOU. They help you obtain financing that is in YOUR best interest and explain the proper procedures and steps it takes to get you to the closing table on your new home. A buyer specialist works for YOU the buyer in YOUR best interest at ALL TIMES. Bottom line is be sure to get someone on YOUR side when you buy - or build a home!!
Do we need a Mold Disclosure?
MOLD DISCLOSURE COMING APRIL, 2004 A new Mold Education Disclosure will be required for all buyers to sign to inform buyers of mold hazards after April, 2004.
PAY NOW OR PAY LATER
Dear Regina: We were interviewing agents for our home, which we want to put on the market in a month or two. We did have one agent who offered to lower her commissions, but that did concern us. Why would she do that?
There is never any fixed commissions; only the agent can tell you what their normal commissions are and sometimes this is mandated by the broker. BUT, I would say Sellers BEWARE of agents who say that they will cut thier "typical" commissions to a lower amount if you list your home with them or if they sell it themselves.
IF an agent is offering to lower her commissions what does that say about the agent? I doubt that she is spending the money on marketing that a Professional Realtor is on her seller's homes and the agent may say anything (true or false) to get the listing with you. Would a doctor that performs open heart surgery offer you a discount fee if you use him, and if he does would you want him operating on you?
Chances are the agent only plans to put a sign in your yard, list you in MLS and talk about what the company does verses what the agent will do to get your home sold quick! Or they could have a plan of letting another agent work the buyers and get a referral on it. So, you'll pay a full commission that way as well.
Bottom line is go with a reputable Realtor who has an excellent marketing plan for your specific home. Statistics show this will sale your home quicker and save you time AND money in the long run.
And don't forget to ask the Realtors for a list of their SOLD homes! If Realtor A only sold 3 homes for the year and Realtor B has sold 87 homes, who do you want working as your Realtor to sell your home?
LOW COMMISSIONS ADVERTISED ON T.V.
Dear Regina: We have been seeing some advertising on a new website that will sell your home for a little under $3500.00. It sounds too good to be true, do you know what is their deal?
There is a new Real Estate company out there that will charge you near $3500.00, give you a sign, give you the proper documents, be there to answer your questions, advertise their company website on TV, and put you on their website.
AND What's the deal? You are showing your own homes, you are not listed in the MLS system where hundreds of Realtors will help you sell your home, you are not receiving targeted marketing for your specific home with mailouts, etc.., you are dealing with the loan officer, lender, and escrow closing agent yourself.
Regina Harp & Team will be more then happy to offer this - *service* OR you can choose to go with our marketing plan that is geared to sell your specific property and home quick!
FSBO'S MUST SIGN PERMISSION FIRST
Dear Regina: We really like the information you have mailed to us and wanted to let you know that we are willing to pay you a 3% commission for any of your buyers that you show our home to.
In a recent class I took in August, 2003, the Board of Realtors announced that FSBO's must be given the appropriate paperwork to sign for Realtors to talk about a seller's home to the Realtor's buyers.
We do have to have For Sale By Owners (FSBOs) sign a Real Estate Agency Disclosure, which is required by state law, as well as have an agreement signed by the For Sale By Owner that we have permission to discuss their particular home and what the commissions will be. Other Realtors aren't doing it? It doesn't surprise me that other Realtors aren't following the rules, however, it's no excuse for us NOT to.
ARE YOU STILL PAYING FOR (PMI) PRIVATE MORTGAGE INSURANCE?
Millions of homeowners were required to get private mortgage insurance (PMI) at the time they purchased their homes, due to having made down payments of less than 20 percent. The monthly mortgage payment includes as much as $150 that represents the PMI premium.
You can get so accustomed to making that identical mortgage payment every month, some people stay on auto-pilot and continue paying for a policy they're entitled to cancel.
Typically, if you've reached the 20% equity level, you*re eligible.If that sounds like you, and if you haven*t gone through the process, there are user-friendly resources to help you get the cancellation process started.
First, you'll need to confirm your eligibility. The Mortgage Insurance Companies of America (MICA), the trade association for mortgage insurers, sponsors an excellent websitehttp://www.privatemi.com/cancel/index.cfm that offers an eligibility calculator, as well as sample letters to send to mortgage servicers that will help you jump start the cancellation process.
If you are eligible to cancel your PMI, your server might require an updated appraisal of your home. Don't rush out and have an appraisal done yourself, though. Mortgage servicers use their own sources to select an appraiser for the job.
If you don*t want to handle the cancellation personally, you can hire someone else to do it for you. PMI cancellation services take over all of the correspondence, escrow account analyses and any disputes with servicers. Figure on spending about $500, including the appraisal. An Internet search for *Cancel PMI* will help you locate a local company.
You've worked hard to have accumulated 20% equity in your home. Don*t pay for something you no longer need! Even if you know you're not eligible yet, use the eligibility calculator to figure out when you WILL be and keep that date posted prominently somewhere in your records. Or even, for instance, on the refrigerator. It'll remind you daily of something positive you're working toward that'll be worth celebrating when the time comes.
- NUMBER1EXPERT™ 
