When most buyers start looking for house, they start on the Internet. If the buyer uses a generic site like Realtor.com, most every home is listed by a different agent. So if ten homes make the buyers short list, up to ten different agents might be called, each offering to show their property. This also happens with drive-by searching. Agents never mind showing their own property because of the possibility of “double dipping” on the commission. Meaning they would earn both the listing side of the commission and the buyers side of the commission. Of course a buyer is ultimately going to work with only one buyer’s agent per transaction which means the other nine (or however many were called) won’t make a dime. This is both frustrating and unfair to agents and is not good for the buyer either.

A buyer should never use the listing agent as their buyer’s agent. The simple reason being a conflict of interest. You wouldn’t hire the prosecuting attorney if you were the defendant in a legal battle would you? Of course not. In real estate, the listing agent typically has a natural allegiance with the home seller. If that’s the case, they will not be looking out for the buyers best interest, instead, looking out for the seller first and foremost.

A major advantage to woking with one agent is they get to know the buyers needs. The best way to figure out what a buyer wants is to go home shopping with them. After looking at several homes together, the agent will see first hand what’s most important to the buyers. This can go a long way in finding the ideal home. Sometimes it takes an outside perspective to point out a pattern that buyers can simply overlook.

Having a single contact for every home and every question you have as a buyer is much easier than scattering your focus among multiple agents. Odds are, you still have to go to work everyday and your house shopping is being done in your “spare” time. Keep your life as simple as possible having one number to call every time.

When you find a good agent, stick with them. This is easier said then done. One recommendation is to use a full time agent. That’s the first indicator they are likely a cut above the majority. If the agent is reliable, experienced and is responsive to your needs then stick with them. They will be thankful you did and will be aptly rewarded at closing.

Happy Home Hunting!

The Buyer / Seller Split: Using 6% (or $12,000) of the selling price on a $200,000 home as an example, here is a breakdown of how the commission could be split: Often the listing broker offers half of the total commission (3%) to a buyers agent. (I’ve seen 70/30, 60/40 and 50/50 splits however.) So if a commission were 6% of the sales price, the listing broker would make 3% or $6,000 and the buyers broker would make the other $6,000.

The Agent / Broker Split: The above example would be pretty easy if that was it, but their’s more… Real Estate brokers take responsibility for real estate agents transactions. Brokers have additional training and minimum mandatory time spent as an agent before they can get their brokers license. Agents are typically independent contractors and all must have their license “held” by a broker. Agents typically have to split their commission with the brokerage who’s holding their license. This split can be vary drastically and often depends on whether a monthly “desk” fee is part of the equation. Since most new agents can’t afford a desk fee, they take a less favorable commission split. The biggest split I’m aware of is 47/53 with the agent receiving the 47%. I’ve seen seasoned professional agents make up to 94% of their commission however paying a $2,000/month “desk” fee is not uncommon. To keep things simple, I’ll use a 70/30 agent to broker split on both sides of this example. Here is how the break down looks now: Both listing and buying brokers earn 3% or $6,000 each. The listing split at 70/30 would mean the agent earns $4,200 (70%) and the broker earns $1,800 (30%).

We’ll introduce you to the best lender in the Indianapolis metro to obtain your loan preapproval so you can shop with confidence.

We’ll email you with listings that fit your exact criteria. We’ll also set you up with a MIBOR portal page so you can keep track of and tag the homes that interest you.

We’ll set all the appointments to view homes of interest and take you to each home until we find a match.

We’ll use our professional negotiation skills to get the best possible price (and other perks) on your new home.

We’ll use our expertise to handle the complex paperwork portion of the transaction.

We’ll keep you on schedule & recommend only qualified service professionals (like inspectors) as needed to complete the transaction.

We’ll review your HUD settlement statement the day before closing to insure no mistakes were made.

We’ll attend your closing and see your transaction through until your new home keys are in your hand!

Call us at (317) 598-9680 to get started today!

Indianapolis, AKA Circle City or Nap-town is the capital of Indiana. The Indianapolis metropolitan area has seen modest and steady growth among U.S. cities, with growth centered in the surrounding counties of Hamilton, Hendricks, and Johnson. Hamilton and Hendricks Counties are currently the fastest growing counties in Indiana and in the Midwest, although the state as a whole is only showing modest growth. Currently, the Combined Statistical Area stands at 1,984,644, making it the 23rd largest CSA in the U.S. The locals like to refer to themselves as “Hoosiers” which loosely translates to “A person from Indiana who likes basketball.” Central Indiana residents enjoy a low cost of living as the housing market is the second most affordable (among major metropolitan areas) in the United States.

Indianapolis Attractions:
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Gregory Hancock Dance Theatre
Herron School of Art and Gallery
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Murat Centre
National Art Museum of Sport
White River Gardens

Education
Listing of All Indianapolis Public Schools

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Local Organizations
Indianapolis Chamber of Commerce
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State Government
State of Indiana
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Department of Agriculture
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Department of Revenue
Tax Forms
Department of Transportation
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State Archives
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2. Have a realistic idea of how much you can afford before you start looking(most lenders will pre-qualify you for free). Not only will this save time, but will also avoid needless disappointment on everyone’s part. Note: Keep in mind that pre-qualified and pre-approved are two very different things. Don’t mislead sellers by telling them you are pre-approved unless you have a commitment to lend from a mortgage lender.

3. Don’t sign a contract with an agent that locks you into looking with him or her, or guarantees them a commission even if you find the house yourself! Specify, instead, that a commission will be paid only if you buy a property shown to you by that agent. This enables you to look with others, and also at For-Sale-By-Owner properties, at your own convenience.

4. Don’t bring an agent with you to look at FSBO properties, or bring them into the picture when it’s time to draw
up a contract, unless you are willing to pay their commission through either a higher sales price, or out of your own pocket. Otherwise, you may risk losing the house (note: your lawyer and banker can help you if you aren’t sure of the process).

5. If you find the house you want to buy before you’ve sold your home, and the seller is reluctant to sign a contract with you with the contingency that you sell your home first, you may draw up a contract that allows the seller to continue marketing and advertising the property yet gives you the “first right of refusal” should they receive another offer. This way you will be notified immediately if the seller has another offer, giving you an opportunity to re-offer if necessary. Another option is to put a non-refundable deposit on the property. This shows the sellers that you are serious about buying their property.

6. If you sell your house before finding a home you want to buy, be sure your sales contract is contingent upon
you, the seller, finding suitable housing! We have heard several stories of people frantic to find a home under pressure, and even having to rent after the closing, because they sold first. Remember, the seller is legally bound to sell once the contract is signed.

7. When presenting an offer, be courteous and respectful of the sellers. In general, avoid criticizing the property with statements like “we don’t care for the new carpeting, and therefore we’ll have to replace it”. This will not justify a lower offer and may possibly insult the sellers, decreasing your chances of their accepting your
offer.

8. If you feel the property may be overpriced, yet the seller refuses a lower offer: Make your offer contingent upon the property appraising for the selling price or higher.

9. Request that you be permitted to walk-through the house (shortly before closing) after the furniture is removed to make sure that some of the home’s faults weren’t covered with furniture, rugs, or wall coverings. It is far easier to request compensation for necessary repair work before the house is sold than afterwards.

10. Request that the seller complete a property disclosure form, stating the condition of all aspects of the property, before you make an offer. (If the seller doesn’t have a form, we have them at our office.) If you are making an offer on a property listed with an agent, make sure you see the seller’s disclosure information first. Agency-listed properties carry no guarantees, and it is the seller who is legally bound to be truthful in reporting the property’s condition.

11. If you don’t know much about building construction, don’t worry. Simply make your offer contingent upon the
property passing a professional home inspection. This is also an excellent way to become more familiar with the upkeep needs of your future home.

12. Put everything in writing. Your sales contract should spell out whether the washer and dryer stay, draperies,
etc.