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Q: Should I use a Realtor if I buy a brand new home? 

A: Absolutely! The sales counselor in the model home is a salesperson who works for that builder. They are trying to sell you one of their houses so they aren’t necessarily concerned with whether or not a house with a different builder is a better fit for you. They want you to buy from THEM. They also are employed by the builder, so they are not working on your behalf. A Realtor will help you find the best home for YOU and it doesn’t matter who built it.

Q: Doesn’t it cost a lot extra to use a Realtor? Can’t I get a better deal without one?

A: No and No. On an existing home, the seller already has a contract with their Realtor to sell their house for a fixed commission, which is then split between the buyer’s agent and the seller’s agent. Whether the buyer has an agent or not, the seller is still obligated to pay their Realtor the same amount of money (usually a percentage of the sales price) that they’d agreed upon. On a new home, your Realtor’s commission is simply a cost of doing business for the builder. You don’t get a better deal without having an agent. You always need someone in your corner that is looking out for your best interests. People don’t realize just how much they needed an agent until something goes wrong and they have no one to go to. 

Q: How can I search for properties?

A: You may go to my website at https://www.har.com/geraldhatterto search for properties anywhere in the Houston area. The more specific the search criteria you enter, the better-suited the homes will be for you. The homes on my website are the same ones that you’ll find on other sites such as www.realtor.com and www.zillow.com. The difference is that by searching through my site, you can e-mail me directly when a property interests you so that I can get more information and work toward setting the appointment to see it. 

Q: Don’t I have to call the agent that has the sign in the yard (the listing agent) in order to see a property?

A: NO!  All Realtors have access to all listed properties. By setting an appointment through the listing agent, you are alienating your agent. The listing agent then does not expect you to have an agent of your own and will often refuse to cooperate with them. The agent that shows the property should be the one to write the contract and receive the commission upon closing. If you see an interesting house while driving around, write down the address and give it to your Realtor to set the appointment.

Q: Is it necessary to be pre-approved for a loan before looking at houses?

A: No. However, it will be extremely difficult to find an agent willing to show homes without the buyer being pre-approved. Sellers typically require that offers be accompanied by pre-approval letters. Also, it’s best to know before searching (and certainly before driving around) exactly how much you qualify for and what the terms of your loan will be so that you know that you will be financially comfortable in any of the homes that you view. A pre-approval letter is good for any property and lets the agents and sellers know that you are a serious buyer.

Q: How do I get a pre-approval letter?

A: Apply for a loan with a mortgage lender you are comfortable with. Your Realtor may have a suggestion or you may find one yourself. 

Q: Once I find the house I want, how long does it take to close? 

A: Usually 30-40 days. On brand new homes that are already finished, the builder can often close faster if you go through their lender and title company. On occasion, an existing home can close more quickly but 30-40 days is what you should prepare for. If the home is not vacant, it could be longer.

Q: What about property taxes and homeowner’s insurance?

A: Taxes can vary by neighborhood and even within a neighborhood. There are primarily city, county, and school taxes. In outer lying areas, there are also M.U.D (Municipal Utility District) taxes. This is for the water and sewer lines. Taxes are typically higher in suburban areas due to the school districts and the M.U.D taxes there. Homeowner’s insurance is required if you have a mortgage. Buyers from states other than Texas usually find that our taxes and insurance are more costly than in their home state. You can have your taxes and insurance included in your monthly payment by setting up an escrow account with your mortgage company. This is required if you don’t put down at least 20%.

Q: What should I expect for closing costs?

A: Closing costs are what you are expected to pay at the closing before receiving keys to your home. Some costs are set fees and some are based on the price of the home. Not including the down payment, closing costs are usually around 5% of the sales price. The buyer can request that the seller contribute towards the closing costs, subject to a limit set by the lender. Closing cost 

contributions are negotiated with the original offer. 

Q: What is a Buyer’s Representation Agreement and why should I sign one?

A: A Buyer’s Representation Agreement is a contract that joins the buyer and Realtor to one another and defines the roles and responsibilities of each party. The buyer is agreeing to work exclusively with that particular Realtor and the Realtor is agreeing to accept fiduciary responsibility to the buyer. Without signing this document, by default the Realtor technically represents the seller.