Using a buyer's agent means the agent is working for your best interests. A buyer's agent will work to negotiate the best price, ensure the property is inspected, and make sure the offer is structured to represent you needs. Things you tell a buyer's agent remain confidential much like the confidentiality offered by your doctor or lawyer. Using a buyer's agent also means that you will be shown any home no matter who is selling the home including New Homes and For Sale By Owner (FSBO). It might seem like using a buyer's agency means you are going to pay more -- but that's the case in El Paso Tx. Buyer's do not pay the Buyer's agent. The agent will be compensated at closing out of the proceeds of the sale. Sellers understand that in order to get the most marketing exposure for their home (as opposed to just drive-by buyers) they need to compensate buyer's agents for bringing an offer. The buyer's agent does not owe any fiduciary representation to the Seller. His/her duty is strictly owed to the buyer if the agent is an Exclusive Agent or Single Agency Buyer Agent he/she will represent only one client in any real estate transaction and will not practice Dual Agency.
Home buying is still a great long-term investment because buyers have tax incentives, they are building equity as the buyer pays down the mortgage and buyers are getting interest rates (the cost for borrowing money) at historically low rates. As a buyer's agent I can tell you what lenders are looking for. Since the recession lenders have become much more restrictive and want to see three things.
2. skin in the game i.e. a good down payment
3. not more than 28% of your income going toward a mortgage (but FHA will allow a higher rate)
Realistically, if you want to maintain your current life style you should not be purchasing a home that is going to cost (PITI or principal, interest, taxes and insurance) more than 1/3 of your monthly income.
Yvonne A. Russell,
Buyer's Agent and Texas REALTOR®
RE/MAX Associates
10940 Ben Crenshaw, Suite C
El Paso, Texas 79935
CELL (915) 873-8646
FAX (915) 594-9253
P Think “Green” before you print
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