What buyers want and what Realtors want

At times it may seem these are opposing views, but really they are the same. As most things it comes down to communication. A buyer begins sharing what they want by describing the house of their dreams, immediately the Realtor starts showing them properties either by email or by taking them to homes. Neither discusses agency relationships, lending options or sharing of recent statistics and how these will affect the buyer's buying opportunities.

Buyers have choices on which Realtors they want to use. Just because a Realtor has advertised a property, they may not be the best Realtor to help the buyer. And most times the Realtor advertising a property has a written agreement with a seller, titled "Seller's Representation Agreement." This means the seller is their client. Now an excellent Realtor will do as our State of Idaho requires the Realtors to do and have this discussion with a buyer at the onset of their first substantial meeting, usually upon showing the buyer the first home. Realtors are actually required by State law to have buyer's sign what is called an "Agency Disclosure Form." This form just lets consumers know they have choices when working with a Realtor. Those choices are to use a Realtor of their own, to use the Realtor who represents the seller, or even to represent themselves in a transaction.

In order to have a Realtor represent the buyer, a buyer must enter into a written agreement. This agreement is called a "Buyer's Representation Agreement." Only once that document is fully executed is a buyer an actual client of a Realtor. A buyer will be required to sign an Agency Disclosure form, but they do not have to sign a "Buyer's Representation Agreement." If a buyer chooses to not sign the "Buyer's Representation Agreement", they are in essence representing themselves like a consumer going to buy a car.

This representation agreement does explain how a Realtor gets paid. Many new buyers don't realize a Realtor doesn't get paid until after the house is closed at a title company. So a Realtor can show over 20 homes to a prospective buyer over the course of a month and never receive payment, unless that buyer comes to terms with a seller and closes on a home.

An excellent Realtor will want the buyer to find the home of their dreams and foster an ongoing long-term relationship in order to receive additional referrals and potentially help that buyer re-sell in the future.

Lending options and actual sales statistics are important, too. If the buyer is banking with a particular bank or credit union, that can be the best source for a residential loan. It is important that the lender and Realtor have an understanding of what type of loan the buyer is qualified for. If it is a VA, FHA or USDA loan, not all houses qualify for these loans, due to repair issues. It is highly recommended to establish who the lender will be prior to looking at homes. It really is about a team effort.

A buyer wants a 3 bedroom, 2 bath home with a large yard and can only afford $175,000.

A Realtor will do their homework and look at the MLS Statistics. In narrowing it down to the main communities of Coeur d'Alene, Hayden, Post Falls and Rathdrum, they will see that since Jan. 1, 2013. Average sold price was $189,478. Average days on market (DOM), 112 and homes are selling within 98 percent of list price. A closer look at April alone, the average sold price, $193,451, average DOM, 109. Home prices are slightly increasing.

As of May 7, 2013, only 58 properties are available in the communities of Coeur d'Alene, Hayden, Post Falls and Rathdrum between $170,000 and $180,000. If the buyer is a USDA buyer, their communities are Post Falls and Rathdrum through this summer.

Yes a buyer can search the Internet for the home of their dreams, but a Realtor can help them negotiate for the best home at the best price based on facts.

Let the house hunting season begin and enjoy it to the fullest.

Trust an expert ... call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Anne Anderson, CCIM is a Realtor member of the Coeur d'Alene Association of Realtors. Anne and the Association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling 208-667-0664.