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OurGulfCoast.com has valuable information for property buyers in the Pensacola Bay area, including buying real estate and houses in Pensacola, Pensacola Beach, Gulf Breeze, and Perdido Key as well as homes and condos in Destin, Navarre, Orange Beach, Pace, and Milton, Florida.

Buyer Representation

The subdivision agent or listing agents are not working for you. Their job is to get the most money and best terms for their clients, the sellers! Hire a buyer´s agent to represent you and your interests at no cost to you.

~ A good Buyer's Agent can save you thousands of dollars! ~

Buyer Brokerage (a.k.a. Buyer Agency or Buyer Representation) is very important for you, the buyer, to understand. Did you know that unless you have a signed "Exclusive Buyer Brokerage Agreement" with your agent, the agent represents the seller and not you? Even if you have been working with an agent for weeks on a consistent basis, if they do not represent you (by having the signed Buyer Brokerage) then it is not their duty to have your best interests in mind throughout the transaction. Simply put, that means that they could disclose things to the seller you may not want them to, such as your financial status, important personal information, or other confidential things you may have said to the agent. This gives the seller the upper hand in the transaction, and could ultimately lose you money.

Even if you know and trust your agent, it is in your best interest to sign an Exclusive Buyer Brokerage Agreement. It is very important that your agent puts your interests above anything else in the transaction. It is also required in the state of Florida to disclose in writing that your agent represents you throughout the transaction.

There are a few things that you should understand regarding your Buyer Brokerage Agreement. By signing the Buyer Brokerage, it requires you to be loyal to your agent, and that you will not work with any other agents throughout the period of your Buyer Brokerage. However, if you are displeased with your agent, a Buyer Brokerage can be terminated if in writing. The agent in turn will promise to keep personal info strictly confidential, negotiate contract terms with your best interests in mind, and of course assist you in the search for the perfect property.

The best part is that your buyer´s agent´s services are at no cost to you! At the time of listing their homes, sellers contractually agree to pay both the listing agent AND the buyer´s agent. In very, very rare circumstances (usually a For Sale By Owner), a seller may not choose to pay a commission to a buyer´s agent. On that house, AND THAT HOUSE ONLY, you would be responsible for paying the buyer´s agent´s commission. Your agent would know of this ahead of time, and let you know so you can decide if you still wanted to see it. You would ultimately have the choice on whether or not to view and/or purchase that house, should that situation arise. But, in today´s market, it is extremely uncommon for that to happen.

If you have questions regarding Exclusive Buyer Brokerage, please do not hesitate to contact me! I´d be happy to answer any questions you may have.

First Time Home Buyer

Buying your first home is such an exciting and liberating time in your life! No more rent payments wasting away into nowhere! But, without the right guidance, it can also be an overwhelming and frustrating experience. It´s important that you not only choose an understanding and knowledgeable Realtor to represent you, but that you understand what the home buying process can involve.

Remember, as a buyer, my real estate experience and services are at no cost to you! At the time of listing their home with a Realtor, sellers agree to pay a commission to both the listing agent AND the buyer´s agent. It is extremely uncommon for a seller not to agree to pay a buyer´s agent a commission. See Buyer Agency to understand the rare circumstances a buyer would have to pay commission.

The first and most important step in buying your first home is to talk with a mortgage lender and get pre-approved. It´s very important for you to understand what price house equals what mortgage payment, and what you feel comfortable spending. Sometimes you can get pre-approved for a high price bracket, but the mortgage payment might be higher than you want. You don´t want to be house poor! This step is also important because there are so many different types of loans out there--even with little or NO money down--and you need to find out what type of loan will work best for you in your circumstances. Your lender will help you understand what your closing costs will be and how much money you will need for closing. Lenders can also help you clean up your credit so you can get the best possible loan and interest rate available.

Once you are pre-approved, the fun stuff begins! Now your Realtor can search through the thousands of homes listed to find what best matches your "wants" and "needs". Homes can be easily emailed to you with pictures, addresses, directions, and all sorts of other information. At your convenience, your Realtor can set up an appointment with you to show you the houses you´d like to see. Once you have found "The ONE", the contract and negotiating begins.

When writing the contract, there are some things that will need to be discussed: First, and most importantly, the offer price. Your Realtor should have pulled comparable sales for that subdivision to make sure that "The ONE" has been competitively priced. Your Realtor will help you decide what kind of offer to make. Other things you will need to discuss and decide are loan type (remember: get pre-approved!), seller-paid closing costs, closing date, home inspection, and any "special stipulations" that you would like in the contract. For example, special stipulations can include things like asking for a home warranty, having the house or carpets cleaned, or the removal of a dead tree.

At the time of writing the contract, you will be required to put down "Earnest Money". This can be anywhere from $500-$5000, depending on your price range (think around 1% of you loan amount). The earnest money will be deposited once the contract is fully negotiated AND accepted into the broker´s escrow account. It is kept there until closing; then it will be credited back to you as part of your down payment. If the contract does NOT close, the earnest money will be distributed in MOST circumstances to the buyer. However, if the buyer is in default of the contract, then they could risk the chance of losing their earnest money. Talk to your Realtor so you understand in what instances you could lose your earnest money.

OK! So now you are all negotiated with your earnest money deposited, and you are picturing what furniture goes on what wall in which rooms; now what??!! The first week after your contract is accepted will be a little busy. You will need to contact your lender and now make loan application. Your lender will have a list of items you will need to get to him, such as tax returns and bank statements. The other thing that will happen in this week is the home inspection. It is strongly recommended that you get a home inspection!! They usually cost between $250-300, but it is worth it! The home inspector will find every little defect of the home and let you know about it. The next step of the negotiating is asking for the homeowner to fix necessary items on the home inspection report. Once the inspection repairs have been negotiated and agreed upon, you are practically a homeowner yourself!

From now until closing, you can breathe a little easier. Your lender will be contacting you with additional things they need to process your loan. Just when you think you´ve got it all to them, they´ll need something else! The loan process can be funny sometimes with the things they need. Keep in mind, though, it´s all to help you get the best loan possible!

Before closing, you will need to talk with an insurance agent and get a 1-year homeowners (hazard) insurance policy. It is required for closing-they won´t close the loan without it!

Finally! The closing! You can expect to be at closing for approximately 1-1 & ½ hours depending on how busy the attorney's office is that day. Your Realtor will attend closing with you to help you understand your settlement statement and help answer any questions you may have. That´s it! You´re done! Homeownership at last!

I hope I have helped you understand the home buying process a little better. I would love the opportunity to be your Realtor and help you through this exciting time in your life. Please don´t hesitate to contact me at anytime!