HOME BUYING PROCESS

This page will help you (the potential homebuyer) understand our role in helping you find and buy a home! Please read this carefully as it clears up quite a few questions that many people have as they begin the process of searching for, and purchasing, a new home!

Step 1

SEARCH THE MLS

Search for a home. In the Twin Cities and central MN (including Sherburne, Mille Lacs, Kanabec, Benton and Morrison counties), there is only one service that combines all the real estate listings of properties for sale, the Regional Multiple Listing Service or RMLS. Although real estate brokers can choose whether or not they wish to make their data available to you over the Internet, about 95% of all brokers share their listings and make them available for you to view on the Internet. The MLS data provided on our site is REAL TIME, so all listings are updated every day, as soon as they are posted to the system. Click HERE to search for "virtually" (95%) all homes for sale in the Twin Cities and central MN.

You can also use the Automated Home Finder. Click HERE to use the Automated Home Finder.

Step 2

CONTACT A REALTOR

Statistics reveal that most people will spend four to six months searching for homes on the Internet before they contact a real estate agent. To make your search process easier we have many tools on our website such as our Automated Home Finder. When you see a home that interests you, send us an email or give us a call at 763-286-1014.

Step 3

BUYER REPRESENTATION AGREEMENT

We primarily represent buyers. How do we make money? We always get paid by the seller of the home. The ONLY way we get paid is by successfully finding the homebuyer a home. In order to do that, the State of Minnesota requires that we ask if you are currently being represented by another agent. If you are not, then I will ask that you sign a BUYERS REPRESENTATION AGREEMENT.

In most instances, when we reply to your initial email or phone call, we will have a conversation like this:

REALTOR: Mr. or Mrs. Homebuyer are you currently working with another Realtor?
MR. / MRS. HOMEBUYER: No.
REALTOR: Great! Would you mind if I faxed or emailed you a Buyers Representation Agreement, so that I may represent you in your quest to find and buy a new home?

This is where many people freak out, because they think that we are trying to get them to sign their life away.

To help overcome that objection, we will gladly start with a 30 day Buyers Rep Agreement, which gives you the ability to dump us in 30 days if you are unhappy with us and the service we provide. Our goal is get our clients into the best possible home and to make new friends by making the process as easy and informative as possible. If you are unhappy with us, then we don't want to make your life miserable. We do much of our business by referral and the only way we get referrals is to treat all of our clients well.

MR. / MRS. HOMEBUYER: Sure that sounds great. Why don't you email me the Buyers Rep Agreement. Let's start out with a 30 day trial period, and if it works out well, then we'll extend the agreement to the standard 90 or 120 day period. I'll read it over and sign it, then either fax it back to you or bring it with me the next time we get together.
REALTOR: Thanks! That sounds great. I'll get that out to you ASAP and we'll go from there!

WHAT IS A BUYERS REPRESENTATION AGREEMENT?

The concept of a buyer's agent is recent. Prior to Minnesota law changing, an agent could work for a buyer and a seller on the same transaction; an obvious conflict of interest. The agent's duty was to the person paying the sales commission (seller), regardless of who first contacted the agent. What that meant was an agent didn't necessarily represent the buyer's interest in achieving as low a home price as possible.

Today, a buyer's agent works exclusively for the home buyer, and cannot represent the seller unless specifically agreed upon by the buyer. The agent for the buyer can freely advise the buyer about all aspects of the property.

When you initially meet with a Realtor to discuss looking for a home, you will be asked to sign Agency Disclosure and a Buyer Representation Agreement. The Agency Disclosure is not a contract. It is simply a disclosure that the state on MN requires a realtor to give a potential client upon first substantive contact (the first sharing of real estate information). The disclosure simply states the different relationships that can be possible between a client and real estate agents.

The Buyer's Rep Agreement basically states that as a buyer, you are hiring the real estate company exclusively, to locate suitable property and negotiate for it's purchase. The fee for this service is typically free to the buyer. The fee is paid by the seller of the home you are buying. The agreement does have an expiration date and can be canceled by either the buyer or the real estate company.

CLICK HERE FOR A SUMMARY OF THESE FORMS
CLICK HERE TO SEE THE AGENCY DISCLOSURE
CLICK HERE TO SEE THE BUYER'S REPRESENTATION AGREEMENT

Step 4

SHOWING PROPERTIES, ETC..

Once the agreement is in place and all parties on the same page, then we will begin working together. We'll schedule times to go out and view the properties and neighborhoods. We'll exchange emails and phone calls and we'll both work closely together to make sure that all possible properties are researched!

We may make a few offers, and then one will get accepted and we'll proceed to closing in 30-60 days for most properties or 60 - 120 days for foreclosures or short sales. Throughout the process we are there to assist you with such things as title insurance, appraisals, inspections, surveys, property taxes, financing, etc… We don't disappear after the closing either! We can recommend contractors for any repairs you need around the house and are always available for questions you may have.

AGENCY AND BUYER REPRESENTATION SUMMARY

Agency Relationship in Real Estate Transaction

It's the law…Agency

Every listing agreement and buyer agency agreement for
real estate services contains a description of agent duties and relationships.

Sellers Agent:	An agent who lists a property and represents and acts on behalf of the seller.
Buyers Agent:	An agent who represents a buyer and acts on the side of the buyer.
Dual Agency:	This occurs when the agent is representing both the buyer and the seller in a transaction, or when two agents working for the same real estate company each represent a party in the transaction. This requires consent of all parties, and all confidential information about price, terms and motivation of any party involved are kept confidential. Dual agents may not advocate for one party to the detriment of the other.

If a buyer(s) decide not to agree to a dual agency, they may give up their opportunity to purchase properties listed by their real estate agents company. If a seller decides not to agree to a dual agency relationship, the seller may give up the opportunity to sell the property to a buyer representative by their real estate agency company.

How does buyer representation work?

In every real estate transaction there are two sides: the seller and the buyer. As agents, we always represent someone's interests. That someone is the party with whom we have a contract. Unless we have a contract with you, the buyer, no matter how friendly we become, my loyalty and fiduciary responsibilities must be to the party with whom there is a contract - the seller.

What happens if Your Company also Represents the Seller?

This is known as a dual agent. We represent both you and the seller. The discussions regarding price, term of contract and the motivation of you and the seller are confidential and do not get discussed with the other party. As a dual agent we cannot work to the detriment of either Party. Although this description of dual agent is brief, feel free to contact us for more complete details.

What are the Benefits to the Buyer?

With either type of agency, we are required to treat you with honesty and fairness, to assist you in selecting a property, and to disclose to you any known material defects in the properties that we show you. As your buyer agent, we can give you our loyalty, and there is confidentiality. We are working in your interest. As your agent, we are negotiating and facilitating throughout the process of buying a home.

What are the Disadvantages to the Buyer?

Arguably, there are no disadvantages, but there is a contractual responsibility. As your representative, we are working in your interest. But just as a seller has a contract to sell through his or her agent, you as a buyer client have a contractual responsibility to buy your home through us during the time the contract covers, even if you find a property on your own.

Is it in the Seller's Interest to work with Buyer Agents?

Absolutely! Working with Buyer Agents provides the home seller with the maximum exposure of their home, highly motivated and qualified buyers, and no liability for a sub-agent's actions or misrepresentations to the buyer.

Will it Cost Me Extra to Have My Own Representation as a Buyer?

NO! The seller pays my fee on all property listed through the Multiple Listing Service (MLS). In the case of a For Sale By Owner, many have already included a fee for the Buyer's Broker because they recognize the value of a professional Realtor showing their home to potential buyers.