5 Top Blunders of Internet Home Buying

Home Valuations

This is great information, and good warnings about how to use online real estate sites. I must say, though, with respect to the home valuation bit, that Cyberhomes is partially owned by LPS, which provides home valuation data and software to the commercial lending and government institutions that are appraising the value of our homes in the U.S., and then using those appraisals for their lending decisions to consumers. Of course the true value is determined by the actual buyer market and many of the psycho-social factors there (LOVE Walkscore, btw - best site ever!), but when it comes to “relative” valuation, I trust Cyberhomes to tell me how much the bank thinks my home is worth. As a matter of fact, I recently found out that they actually provide much home valuation data to MANY other home sites for their home valuation tools, with Zillow being one of them. Of course, the values you see on Zillow are different than those on Cyberhomes, b/c Zillow applies their own algorithm to deciphering home values, but the data they use comes from LPS/Cyberhomes…it’s not a perfect science, though.

Sanjay of CA @ Feb 07, 2009 12:51:37 PM

What About Educating Buyers Why(Benefit) They Need To Sign Buyer Representation Agreements

We agents know why the Buyer should sign a Buyer Representation Agreement, and the ramifications for them if they do not. I always have them sign one from the very beginning and still, they seem to think it means nothing!

One problem I see is that not enough information is out there that is directed at the Buyers.

More articles need to be directed at Buyers rather than agents.

The Information About Broker Services addresses the differences

in client vs. customer, but most buyers still really do not understand and think it is just another scam to get them to sign and make them stick with that agent.

Elia Cooper of TX @ Jan 28, 2009 14:16:36 PM

Cliet vs Customer

brokeranne of NY - Your explanation is really confusing (if this only happens in NY). In Virginia, only the Listing Broker/Agent have the seller as their client. A Buyer's Agent would NEVER represent this same seller unless the Buyer's Agent is also the Listing Agent. In VA, you can be found liable to a buyer without a written buyer rep agreement. I think that part stinks because an agent has duties, etc. to a buyer without a written agreement and yet the buyer has no "duty" to us legally.

Connie of @ Jan 27, 2009 21:00:28 PM

Buyers think they know it all because of the Internet

I agree that when the buyers are doing a lot of the leg work online they feel like they "know it all". What I have found is that the only thing they Might know is the pricing and location. But as a buyers agent, I point out relevant facts pertinent to their personal situation that they would Never know or think of because they don't buy every day! One client told me that the information I gave him as we looked at homes was really good information he had never heard of nor thought of..In addition clients need to know that a good agent will often times take care of problems before they become one by the wording they use in the offer, the questins they ask of the seller and so on. It is a very complicated process and just because you or someone you know had an easy transaction does not mean that problems were not handled that they might never have known about. Agents need to inform their clients of problems that came up and that they took care of so they are educated as to how much we do behind the scenes.

Lisa of AZ @ Jan 24, 2009 11:12:57 AM

Cliet vs Customer

Until Agents and Broker clearly understand the difference between the terms Client and a Buyer...buyers and sellers are both being mis-led. A Client is the person for whom you work ....and to whom you have pledged a fiduciary and... who pays you! So unless you have a true buyer representation agreement with a buyer; your Client is your Seller.

A Listing Agent/Broker Finds a buyer for a home; A Buyer's Agent finds a home for a Buyer. There is a tremendous difference, with great legal ramifications. So a tradition agent,who has not entered into a Buyer Broker Agreement with a buyer, yet who "looks for a home" for that buyer via the internet or otherwise is violating the Law of Agency.

All of you brokers out there - take the time to re-train your agents!!!

brokeranne of NY @ Jan 23, 2009 16:18:21 PM

Internet Home Shopping

One of the primary issues I have observed in my 22 years (19 as Broker)as a Realtor(T), has to do with the lack of trust between clients and their agent. This really reveales how imperative it is that the relationship is developed long before "time to purchase". Since I, and many agents are prepared to; assist with internet research, provide local resorces, research requested details, act as "local eyes & ears", draw together "professionally sold as well as FSBO's properties, analize price information, on and on and on, would it not be wise for relocating buyers to "get to know" their agent before "time to purchase? Herein lies the rub; Too many "knowledgable" buyers wish to control their decision about an "agent" too far into the process, mostly at the "time to purchase". (do I want, need an agent, should I get my own, use the sellers agent?). Would it not make much more sense and enhance their purchasing process to do this early on? For example, I, as many agents, support my clients "driving around, researching the internet, doing desirable legwork, establishing their lender relationship and/or other desirable actions". What I am unwilling to support is not having an established commitment, a client, if you will, prior to doing those professional things which my clients deserve.

Jim Noblet of VA @ Jan 23, 2009 13:47:42 PM

For sale by owners

Most often For Sale by Owners do not have their home listed with an agent because their asking price is above the market price and often times their assessment of value is not objective. They may also feel they are not required to tell the Buyer any of the negative details of their property or the area. It is best to have an agent working for you, with your best interest as their number one goal,and with an objective view of each property as an investment.

Donna Schenek, REALTOR of AZ @ Jan 23, 2009 10:22:42 AM

Interested in Naples, Florida?

We have plenty of Listings!

www.NaplesSunAndSand.com

The Grant Team of Naples

Prudential Florida Realty

Joe Muni of FL @ Jan 22, 2009 22:57:07 PM