Monday, February 11, 2008
The Chicken or The Egg - Who Should First Time Homebuyers Hire First?
If you visit the online resource provided by Merriam-Webster, you will find the following...
chicken–and–egg (adj.): of, relating to, or being a cause-and-effect dilemma
Etymology: from the proverbial question “which came first, the chicken or the egg?”
You've decided to buy a home! Congratulations!
Let me guess......You have a question.
What is the correct first step in purchasing a home?
Actually...this question is probably one of the first questions asked by most home buyers.
Should you call a bank or mortgage company and obtain a preapproval or should you call a REALTOR® and discuss current market conditions? The answer to this "chicken or egg" argument will set the stage for a smooth or rocky home buying experience.
In my opinion, your first hire should be the professional that can put the F.A.T. in your home buying experience. What's F.A.T.? You are full of good questions.
F.A.T. is an acronym that represents the key qualities of a real estate sales professional. A real estate sales professional should be a great Facilitator, Advocate and Taskmaster.
If you do not hire a REALTOR® with these traits early in the process, you might be on the road to wasting scores of hours, gallons of gasoline and thousands of unnecessary dollars during the home buying process.
Why do you need a facilitator? Purchasing a home requires involvement from several professionals from different industries. You will encounter home inspectors, termite and heating & air specialists, attorneys, homeowners and other real estate agents. All of these parties have a hand in a real estate transaction. You need to find someone that can facilitate the involvement of these aforementioned professionals. Most mortgage loan officers do not have this in their job description.
However, being a facilitator is not enough. While facilitating these professionals, you want someone to work on your behalf.......An Advocate!
South Carolina Agency Law and the REALTOR® Code of Ethics charges REALTORS® to put your interests ahead of others at all times!
Reputable lenders will follow those principles. However, how do you know that home inspectors and other real estate agents are putting your interest ahead of theirs? That's right! You don't!
To guarantee having an advocate that has a fiduciary duty to work in your best interest, you should enter into a SIGNED AGENCY AGREEMENT with a REALTOR®.
Thirdly....You must have a Taskmaster that has years of experience in working as a facilitator and an advocate.
While doing some research, I came across a Marvel Universe fictional character named Taskmaster. Taskmaster possessed an arsenal of weapons and was a trainer of super villain henchmen. He has the ability to masterfully mimic the physical movements of anyone he witnesses.
Even though Taskmaster was a villain in the Marvel Universe, a good REALTOR® should possess and use their powers to slay the pitfalls (villain) that can challenge your home buying process. Without those traits, you home buying experiences could be full of frustration and disappointment.
In conclusion, an egg mostly brings forth only ONE CHICKEN. However, a chicken can look over many eggs. Do you want to start the process with someone that can represent only one egg in the home buying process or should you start with the person that oversees all the eggs?
The choice is yours! However, my advice would be to hire a chicken with super powers that can put the F.A.T. into your home buying experience.