In this blog, we will cover and discuss working with real estate agents who are also NMLS licensed mortgage loan originators. Real Estate Agents are licensed professionals. Realtors work with home buyers and sellers. Agents are knowledgeable not just in helping buyers with buying and selling homes. They are extremely knowledgeable in lending, insurance, appraisals, renovations, property values, and the areas where they represent. Homebuyers and sellers need to get along with their real estate agents in order for them to have a smooth home buyer and/or selling process. Realtors are known to be the quarterback in real estate transactions. Most agents have a network of professionals such as lenders, title companies, contractors, attorneys, and other third-party vendors. In this blog, we will discuss Working With Real Estate Agents for home buyers and sellers.
Working With Real Estate Agents And How They Are Paid?
Most real estate agents work on commission. What this means is if they do not sell, they do not get paid. Realtors are motivated in working with their clients and maintaining a great relationships so they can get paid. Agents will do extensive research, market analysis, and quarterback the whole buying and lending process with you to get you to closing. Home sellers list their homes with a listing agent. Sellers are not obligated to pay anything unless the home sells. However, once the home sells and closes, home sellers normally pay a 6% sales commission on the closed price of the home.
Realtor Commissions Paid By The Home Sellers
The standard realtor’s commission is 6%. If the listing realtor finds a buyer, then the listing agent will make the full 6% commission. However, if another agent brings the home buyer, the listing agent will split the 6% commission with the buyer’s real estate agent. Listing agents normally pay for open houses, internet marketing, mailers, ads, open houses, and other marketing expenses. Agents and their clients should be respectful to each other with common courtesy. Homebuyers should not expect to have their agents drop what they are doing to go see a property. The agent needs to make an appointment with the listing agent. The listing agent then needs to contact the homeowner and see when the subject property can be shown. Please make sure to honor the time of the appointment. There are ways to Working With Real Estate Agents when shopping for homes. There are many parties involved in scheduling a showing. If running late or cannot make the appointment for one reason or another, please contact the agent and keep them updated.
Working With Real Estate Agents Who are Dually Licensed as Loan Officers at Gustan Cho Associates
Homebuyers and sellers would want to choose the right realtor with who they can get along. Buyers should hire an agent representing them instead of dealing with the listing agent. Interview agents with whom you get along, have the same interests and know your expectations. Let the agents know that you are interviewing agents and be upfront and frank with them. One great benefit of working with real estate agents who have their mortgage license is your realtor will represent you as your purchase agent and loan officer. You do not have to deal with going about hiring a loan officer. Gustan Cho Associates Real Estate Partner Network takes care of everything.
Benefit and Reward Working With Real Estate Agents Licensed as Realtor and NMLS MLO
Do not interview multiple realtors from the same company. Never contact the listing agent if you have a buyer’s agent. If you contact the listing agent already before hiring a buyer’s agent, the listing agent is going to expect to represent you and the seller. Hiring the listing agent to represent you as a buyer’s agent in hopes of getting preference and a better deal will normally not work. This would be violating ethics rules and laws and the realtor can lose their license.
What To Expect When Shopping For Homes And Working With Real Estate Agents Who Are Loan Officers
Open houses are held every weekend in most towns and cities. Most open houses will allow attendees to be accompanied by a realtor. When attending an open house without your agent, make sure to have your agent’s card. Hand the listing realtor and/or open house host your real estate agent’s business card. Let your buyer’s agent know if you want to proceed with making an offer on an open house home you are interested in. Do not start any negotiations with the listing agent if you are represented by your own realtor.
Paperwork Required When Engaging With Working With Real Estate Agents
Once you decided which agent is going to represent you, expect to sign a home buyer’s real estate broker agreement. It is a contractual agreement between homebuyers and real estate agents. It outlines the realtor’s duties, expectations, and scope of work. There are exclusive and non-exclusive realtor’s agreements. Make sure you thoroughly review it before signing it. Ask your loan officer to review the agreement. Make sure you are able to get out of the contract if both you and the agent do not get along. The Realtor should give you an agency disclosure document which is a fiduciary responsibility written agreement.
Working With Real Estate Agents who Represents You as Realtor and NMLS MLO and What To Expect
Buyers can have their agents pick them up or meet them at the subject property. If you are only looking at one home, you can meet the agent at the subject property. Or if you intend in visiting multiple properties, it may be best in having your realtor pick you up or meet the agent at their offices. Let the agent know what your expectations are.
The Simplicity, Service, Convenience, Knowledge, on Working With Real Estate Agents Who Are a Dually License Realtor/Loan Officer
Do you want to be updated daily? Weekly? By phone? By text and/or emails? Agents want to make home buyers comfortable and happy. Open communication is key. If you do not understand certain forms and/or documents, tell the agent to explain. Ask many questions to avoid misunderstandings If you need a third-party referral such as an attorney, title company, lender, contractor, insurance agent, ask the realtor. Most realtors have a list of referral partners.
Entering Into A Real Estate Purchase Contract
Once you find the homes of your dreams and are ready to enter into a purchase contract, let your agent know. It is the role of the real estate agent to negotiate the purchase contract. The buyers and sellers agents will go back and forth on the price, contingencies, sellers concessions, closing date, and other factors. Listing agents will not accept an offer unless the buyer has a solid pre-approval letter from a mortgage lender. Make sure that your pre-approval is solid and that your loan officer is experienced and reputable.
Working With Real Estate Agents With Extensive Experience Both As a Realtor and Loan Officer
Julie Hayward is one of our top referral partners at Gustan Cho Associates. Julie represents many home sellers who are facing foreclosure and can help quarterback short-sales. Julie teams with her attorney husband Chad Hayward and can help home buyers looking for short sales and/or foreclosure properties.
Getting Pre-Approved With a Mortgage Company Licensed in 48 States
The pre-approval stage is the most important stage of the home buying and mortgage process. Make sure that you do extensive research on your lender and loan officer. This holds especially true if you are a borrower with less than perfect credit and higher debt to income ratios. Over 75% of our borrowers at Gustan Cho Associates are folks who either got denied at other lenders and/or are stressing during their mortgage process. This is mainly due to the inexperience of the loan officer and/or lender overlays. If you need to qualify for a home loan with a five-star direct lender with no overlays on government and conventional loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at email@example.com. Majority of homebuyers working with real estate agents who are dually licensed as a loan officers liked having their realtor also be their loan officer.