At the same time, be sure your agent knows you are serious about getting a deal done, or else the agent may move you down her priority list. If you display a knowledge of mortgage rates and recent prices in the neighborhoods you are looking at, the agent will know you’re a serious customer who can’t be pushed into a bad deal.
You can reinforce your credibility if you can walk in the agent’s door with a opener like, “Hey, I just saw that J.P.Morgan Chase (Stock Quote: JPM) and Wells Fargo (Stock Quote: WFC) dropped their rates.”
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Finally, remember that your deal with the agent is negotiable. The seller’s agent may want a listing agreement giving him the exclusive right to represent you for six months or longer. It might be better to start with 30 or 60 days, then extend if you’re satisfied the agent is really hustling.
The commission is also negotiable. While 6 percent of the sales price is common, the seller can offer less.
But remember that the commission is the agent’s incentive to work hard. It’s fair to stipulate that you’d pay only half the commission if you come up with a buyer without the agent’s help, such as a neighbor or relative who had expressed interest in your property before the agent was on board.
Use the BankingMyWay.com search tool to keep abreast of mortgage rates. With the various mortgage calculators, you can figure monthly payments with various interest rates and loan amounts. Whether you are a buyer or a seller, that will tell you if a home is affordable at a given price.
—For more ways to save, spend, invest and borrow, visit MainStreet.com.
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