Buying a Home or Condo in the Seattle Area

Check out Urban Living Seattle’s list for Buyers:

Research Page (long list of links and resources)
e-Lists (subscribe to daily listing updates)
Search the MLS (search the entire database)
Market Update (learn about prices and home values)

Why Should I use a Buyers Agent?

The internet has provided us with a vast array of information available at our finger tips, including real estate listings. We embrace the forward movement of real estate information available on the internet to consumers. It may occur to you, with all the information available why you should use a Buyers Agent when you could possibly purchase something without an agent or use a limited skill and service real estate company to provide you with the basics if you find the house on your own. What most buyers do not realize is that a Buyer’s Agent does a lot more then just show you properties or find you a home. That is actually the easy part, getting a contract accepted, negotating terms and identifying potential issues and problems is where having true representation really comes into play.

Washington state is one of many states to recognize and recommend specific representation when buying a home or condo referred to as “Buyers Agency” or using a “Buyers Agent”. A Buyers Agent is a real estate agent that works soley in the best interest of the buyer and does not represent the seller or anyone else. A Buyers Agent is recommended for all home or condo purchases in Washington State for many reasons. As a buyer, it is important that you are counciled on obtaining information about a property (crime statistics, sex offenders, material defects in the property, issues surrounding the neighborhood etc.), the current real estate market values, and assistance with negotiating and writing the Purchase & Sale Agreement Contract. Not to mention, that because real estate agents communicate with each other and network they are always the first to know about new listings way before they hit the newspapers or public open houses. Because the real estate market in the Seattle area is a fast moving market and our contract laws change frequently, it is highly recommended all buyers work with a Buyers Agent. Most people wouldn’t represent themselves in court but would instead hire someone with the professional skills to best position them to win what they are wanting. You can apply a similar attitude towards working with a Buyer’s Agent given that you are dealing wth a large financial transaction and there is a lot of liabiliy and things to consider that could have both emotional and financial impacts on your future.

Most educated people will agree that there is an experience level needed in negotiating succesfully and that specific knowledge of the market holds a high benefit when leveraging your purchase or sale. When you have been exposed to the intricacies of more than 200+ transactions, financing, negotiations, inspections, contracts, and trends and changes in the market place there is an expertise that develops that the average person trying to represent themselves just cannot match unless they have 40+ hours a week and multiple weeks to dedicate to learning all of the laws of real estate, contracts, services and to personally view all the properties available in their market, including the ones thsat were sold up to 6 months prior and sit in on numerous negotiations to learn how best to position themselves and their contracts.

In most cases, a Buyers Agent frees up your time, reduces your risk and makes the process go smoothly because they have market expertise, skilled risk reduction techniques and contract knowledge. When you work with a Buyers Agent, you generally do not pay a fee upfront for the services of the Buyers Agent but you are asked to sign a Buyers Agency Contract to work with that particular agent until you sever the relationship. The Buyers Agent’s fees or commissions are paid only when they sell you something and that transaction closes. Most of the current market pricing includes any commission to be paid structured into the pricing already. The Buyers Agent then receives a portion of the commission from the selling side of the real estate company fees. This means that you receive all the services and benefits of working with a Buyers Agent at little or no cost to you as a buyer. One common misconception is that if you do not use a Buyers Agent, you will be able to get “the Buyers Agent” commission or fees credited back to you thus saving you money going it alone verses using a Buyers Agent. Some companies offer to give the Buyers a rebate or “kick back” thus indicating they will be saving money. Generally speaking most buyers who have a full service Buyers Agent working for them end up negotiating a better deal that saves them more money then they would get in a rebate or they win the property in a multiple offer scenario that they wouldn’t have won because of the due dilligence of a good Buyers Agent. Therefore In Washington State, a commission or fees for any real estate related services can only be paid to a licensed real estate broker and “kick backs” are illegal. This means that an attorney, a buyer or a lender cannot receive a portion of the real estate commission unless they are a licensed broker. The buyer generally will not “save” money when purchasing without an agent and may end up paying more because of the lack of market expertise that their agent will have in negotiations and pricing.

Also it is good to know that most listings have restrictions on how the commission is to be paid out to the Buyers Agent. For instance, if you are using a limited service company to represent you and they do not show you the property in person but make you find it on your own through open houses etc. with a promise to credit you a portion of the buyers commission, beware because some companies require that an agent be present at all showings of a home and the inspections in order to receive the full buyers agent commission at closing there will be nothing to rebate. You could end up not receiving the credit back and not receiving good representation in which case it will cost you money.

It is advisable to interview prospective agents and choose one Buyers Agent to work with. Once a commitment is made to work with your agent, a Buyers Agency Contract is generally required. By signing a Buyers Agency Contract, you know that your agent is committed to showing you properties first and that they will spend their time and energy looking for a place for you and working in your best interest at all times. This partnership also requires you to inform your agent if you no longer wish to work with them or have a change of plans. By working together you will ultimately have the best experience possible and will be more likely to feel satisfied with your purchase and your investment.

A true Buyers Agent shall at all times adhere to the following:

1. Be loyal to the buyer by taking no action that is adverse or detrimental to the buyer’s interest in a a transaction.

2. To timely disclose to the buyer any conflicts of interest.

3. To advise the buyer to seek expert advice on matters relating to the transaction that are beyond the agent’s expertise.

4. Not to disclose ANY confidential information from or about the buyer, except under subpoena of court order, even after termination of the agency relationship.

5. To make a good faith and continuous effort to find a property for the buyer.

6. The showing of property in which a buyer is interested, to other prospective buyers by a Buyers Agenty does not in and of itself breach the duty of loyalty to the buyer or create a conflict of interest.

7. The representation of more than one buyer by different licensees affiliated with the same broker in competing transactions involving the same property does not in and of itself breach the duty of loyalty to the buyers or create a conflict of interest.

When a buyer signs a Buyers Agency agreement with Urban Living Seattle Associates, that buyer becomes a top priority client. With a Buyers Agency Contract you are assured that our team is working daily to find you the perfect home/condo or loft. As soon as a new listing come on the market that fit your needs, you’ll get priority showing status as well as a thorough education on the market value, potential pros & cons and neighborhood information. With a Buyers Agency contract there is a high level of commitment from both the buyer and the agent to partner together to find and negotiate the very best home for you.

There are limited services that you can use instead of a full service Buyers Agent that will offer to credit you back money giving the impression that you are saving money. However, if you look closely at the services that are offered, unless you are a totally confident savvy real estate investor with time on your hands, you will have to spend a lot of your own time and money doing research and trying to figure out if you are getting a good deal. Many of these services don’t offer you any market expertise. They will not take you out and show you properties and provide you with important market knowledge to reduce your risks. Understanding why this house is worth more then the one next door even though the statistics are the same is only something that your full service Buyers Agent will be able to provide. Saving money upfront always sounds good but saving money can take many forms and negotiating a better deal on the house most often will save you much more then getting a rebate on the commission.

You can be assured that when you work with the Urban Living Seattle team, you will receive excellent professional representation. They will handle all of the details in finding your home, assessing the value, educating you on the current market, negotiating the Purchase & Sale contract, reducing your risk and managing all the details once the offer is accepted, helping with financing and inspections and making sure you have a smooth transaction up until you get the keys to your new home. We have a long list of references and satisfied client that we are happy to provide to you upon request.

Contact us for a no-obligation consultation to find out how we can help you purchase your next home, condo or loft. All consulations are free, last approx 30-45 minutes and are offered by appointment at our office at 1661 E Olive Way on Capitol Hill.

Contact us now online or at 206.720.7603 to set up your home buying consultation.