If this is the first time you’re looking to buy a house, you might get lost in all the terminology and jargon. One example would be 5-1 adjustables or discount points, which people don’t really find the need to learn about unless they absolutely have to. Below you can find some information on what the short primer means and a few answers to the possible questions you might have when you’re looking to buy a house for the first time.
1. Is a real estate broker necessary?
First of all, you should know that a real estate broker will work mainly for those that sell the house, not for you. Usually, the seller hires the broker. Next, the broker starts to market the house and looks for people that might be interested in buying it. They get 6% of the price of the house, so it’s in their interest to convince you to buy it.
The problem is that these brokers will act like they are actually working for you. Don’t give the broker too much information on how much you can pay or what down payment you’re willing to pay. If you do tell the agent information like that, he needs to tell it to the seller. Sharing information like that can’t do you any good. Also, just because the broker seems like he’s very helpful and you like him, you shouldn’t let your feelings get in the way of a business. Choose with your head, not with your heart.
A good idea might be to look for houses that are sold directly by their owner, not through a broker. If the owner doesn’t have to pay the 6% fee, you can negotiate a bit better on the final price of the house. The problem is that you need to invest a bit more energy and time.