DISCLAIMER: We are not realtors. We are just sharing what we’ve learned with you.
So, you’ve decided, you’re ready to start this homestead journey and for you, it’s going to require a bit more space. You let yourself imagine being on property with enough space to do all of your homesteading dreams – or what you can afford to do at the moment. If you’re anything like us, you could be thinking, “Good grief, where do I start?” One thing you might decide to do is find a realtor. But, should you just use any realtor? I mean, you met your mom’s friend’s sister once. And she’s so nice! Maybe you should just go with her – right?
May I suggest that you don’t just go with someone you know. You want to make sure that you get a realtor that is experienced in what you want specifically. Yes, buying is buying – and the contracts and going about them for both land and house may be the same. But, the processes and concerns are vastly different. And you want your realtor to know those differences and help you make the best decision that you can for your dream.
Make sure the realtor you work with is very familiar with the lifestyle you want to live and the area you want to live in. You could hire the premier realtor in your area, but if all of their clients are million dollar spenders with million dollar homes in the heart of the bustling city, and you are looking for something one hundred thousand dollars or less on five acres of land in the neighboring county, they won’t be much help. Look around for those who know what homes in your price range may be up against. You may be looking at old construction. Make sure the realtor understands about foundation issues, and other troubles old homes go through and they help you look for them as you view the property.
If you are looking for land, make sure that the realtor knows about land and will be willing to get dirty and walk every inch of it with you. We have worked with a few realtors and when we were looking for land, I always looked at the their shoes. If they came in muck boots, I knew they were serious LOL. Land is a very different process when it comes to buying. You want to know about boundaries, topography, waterways that may run through the land (and how that will effect what you want to do), and the value of any timber. If you are looking for hunting land, they should be able to help you see if it’s good for that as well.
Next, make sure this realtor is going to work for you. There are basically three ways a realtor works – both with buying land or home. They can be a…
- Seller’s agent,
- Dual agent, or
- Buyer’s agent
If they are a Seller’s agent, they are just that – working for the seller. Their primary concern is for the one who hired them as a seller, not you. They will, by contract, be obligated to that seller and the seller’s best interest from start to finish. That won’t be good for you as a buyer.
Then you have a “Dual Agent”. A realtor acting as a dual agent will be seen more as a mediator. They will be working for both you and the seller to get the best deal possible for you both. It will be their job to be fair and equal and no one will have the “advantage” over the other. This means the realtor’s loyalty will be divided between the buyer (you) and the seller and you both have two different interests (buy low, sell high). Also this means that you need to keep in mind this is a win-win for the realtor as all business will be transacted through them. This can help and it can hurt you. It can help in that there won’t be any “waiting for the seller’s agent to call me back” talk, but hurting you as a buyer because the agent gets a certain percentage of the sale. If you are working with an unscrupulous agent, they are going to want you to buy for the higher end of “middle ground” instead of lower and remember they want to sell, so everything a buyer’s agent would point out for you, they may “overlook” which means more work for you.
A Buyer’s agent is just the opposite of a Seller’s agent. They will be there for you and your interest as a buyer. As a buyer’s agent, they are to promote your best interests, follow your lawful instruction, provide you with as much material as possible (to help you make an informed decision), and they can not talk about you to the seller or seller’s agent without your consent. Some information about you could influence the seller’s decisions, so it’s best not to divulge anything you don’t want known to your agent until you sign an agreement.
We have worked with all three types of agents before for various reasons. We are currently working with a Dual agent and are having a pretty good experience. I had my reservations at first, wondering if he could be fair and honest, and so far he has proven to be. I can say also, having only one agent involved in the process has made things smoother for us since he is the point man for everything and he’s very easy to get in contact with.
So, if you are deciding to buy a home or land, make sure you have a realtor that will satisfy what you need, instead of trying to work with someone you know. But, if you know the person and they can satisfy your need, then go for it. You might have a winning combination!