Following a Buyer: Annie, Part 1
"I've Got a Buyer for You"
I'm following another first-time buyer's search, with her blessing. This one started at an Atlanta United game.
Saturday night I was at Mercedes-Benz Stadium for Atlanta United. I'd barely sat down when my friend Bryan, who has the seat next to mine, announced, twice, "I've got a buyer for you. I've got a buyer for you."
It was his daughter, Annie. I'd met her a couple of times at games. She texted me two homes she'd found, and I missed the entire first half texting her back and setting up a buyer consultation for 9 the next morning.
SHE'D ALREADY FOUND TWO HOMES
Annie had found those two homes on Zillow. The day before, she'd been browsing, a little bored, and booked to see them through the site. A couple of weeks earlier she'd loved a house that sold almost before she'd finished looking at it, so this time she moved fast.
Bryan told me the agent she'd connected with was the listing agent for both homes. I said I didn't think so, and looked up one of the listings to check. She wasn't. Then I explained how it works: Zillow agents pay for leads. Zillow puts their names next to homes, so when you browse the site and hit "connect", you're reaching an agent who's hoping to represent you in buying that home, or another one. I know because I used to be one. I was a Zillow Premier Agent for three years and built a lot of my early business that way, so I understand how it works and why agents do it.
But the agent who called Annie kept bringing up Zillow's own mortgage program. Annie's reaction, as she told me: she texted her dad, "Oh no, what have I done?"
She hadn't done anything wrong. But it made her wonder whose interests the agent was looking out for, and that's the right question to ask. Every agent has lenders they like. I have a preferred lender too. But a buyer's needs come first, and that means telling them to shop around.
WHY WE STILL HAD THE CONSULTATION FIRST
Annie wanted to see those two homes, and we did, that same afternoon. But I still wanted to do the consultation first. I always do, even when a buyer has already found something, because I'd rather someone knows the market, the process and the rules before they walk through a door, not after.
Before anything else, I checked she hadn't signed anything with the other agent. If she'd already been under a buyer brokerage agreement with someone else, I couldn't have helped her.
Then we spent a little over an hour on three things.
What she wants. A townhome or a single-family home, at least two bedrooms, and parking that's hers. That one's a must, not a nice-to-have, because she doesn't want to be driving round in the dark looking for a space. Some kind of backyard for Abby, her golden retriever, ideally fenced. A kitchen with room to move, and an island or breakfast bar if she can get one. A gas stove would be nice, but it isn't a must. A walk-in closet if possible. And safety is high on the list.
What would make her walk away. A house that needs a lot of work before it's livable. Small things she can change over time are fine. As she put it, "I have my dad for that."
How it all works. Earnest money, due diligence, what an inspection and a sewer scope cost and why they're worth it, the appraisal, closing costs, and why she should never act on wire instructions without picking up the phone first. Everyone gets this conversation, and it's always shorter than finding out the hard way.
TWO RULES I GAVE HER
80-10-10. If a house has 80% of what you want, 10% you can fix and 10% you can live with, it could be the one. Don't hold out for perfect.
Walk the street. When we find a house she likes, we'll walk the neighbourhood. If you don't feel comfortable walking it, there's no point living there, even if you'll mostly be driving. And if we meet a neighbour, we'll talk to them. People tell you the truth.
SHOPPING FOR A LENDER, NOT JUST A HOUSE
Annie hadn't talked to a lender yet, so we talked about who to call. I introduced her to Justin Stuart at Social Mortgage, my preferred lender. He's a mortgage broker, which means he can go out into the market to find the loan that fits, not just offer one bank's products.
But I also told her to talk to her own bank and to her dad's bank, where he already has a relationship with a mortgage lender. Each type of lender works differently. A bank can only offer its own loans. A credit union or community bank can sometimes beat everyone on rate, but may be slower or stricter. A broker shops around. The only way to know which is best for you is to compare them. Do your shopping within a short window: the credit bureaus can see you're shopping around for one mortgage, so the checks don't hit your score as hard.
Annie has since spoken to Justin. Her search reports go live as soon as she has a price range, so every house she sees is one she can actually buy.
HOW WE'LL SEARCH
- Two MLSs. I search both FMLS and Georgia MLS, because about 10% of listings are only on one.
- Every other day, in the morning. Instant alerts would overwhelm her, her words. Most new listings appear midweek, so the reports are timed around that.
- Keep using Zillow if you like it. Just know the MLS gets new listings and status changes first, sometimes by a day or two.
- New builds go through me. If she walks into a builder's sales office on her own first, the builder may not pay my compensation, and she could end up paying it herself.
WHERE THINGS STAND
Annie has her list, she's been through the process, and she's seen two homes as a baseline. She's talking to lenders now. No offer, and no rush.
WHAT I'D TAKE FROM THIS
- Have the consultation even if you've already found a house. Know the rules before you walk in.
- Ask whose interests the agent is serving. Any agent can recommend a lender. A good one tells you to compare.
- Talk to more than one lender, all at once. Broker, bank, credit union: they all work differently.
- Know your must-haves from your nice-to-haves. Annie's parking is a must. Her gas stove isn't.
- 80-10-10. Don't wait for perfect.
NEXT TIME
The lender conversations, the first search reports, and the next round of homes.
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Thinking about buying, even if you've already found a house you like? Get in touch (link: https://www.neelmidha.com/contact). Let's start with a buyer consultation.
