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Shopping for a house long distance
By Salvatore
Caputo Bankrate.com
Buying
a house can be stressful. Moving to a new city or state also can be tough on
the nerves. Combine the two and you've got an ulcer waiting to happen.
Relax! Thanks to today's technology, it's never been easier to
buy a house in a distant locale.
People make long-distance moves for many reasons: a company transfer,
a better job climate or a desire for a change in weather or lifestyle.
Some people are lucky because they already know the place where
they're moving. Steve and Carolyn Lewis moved with their daughter, Danielle,
from New York's Long Island to a rural area of Michigan. "I had been wanting
to move back home for 30 years," Carolyn Lewis says, and as Steve neared
retirement, she was able to convince him it was time to move to a slower-paced
area where they'd have plenty of support from her family to help take care of
their autistic daughter.
"I knew the area and I found this house (the one they bought)
on the Internet," she says.
Even if you don't know an area, many real estate agents
agree that the Internet has become a powerful tool in long-distance buying.
"The short answer is you could go onto any search engine
to research the area," says Ronald Phipps of Phipps Realty and Relocation
in Warwick, R.I. "Realtor.com
is a first-rate option." (Phipps is a regional vice president of the National
Association of Realtors, which runs the site.) "You can search raw inventory
in an area and then identify which agents and agencies service the area."
But don't discount time-proven methods of finding real estate
agents who can help with a long-distance move. For instance, you can check out
newspapers from your target community to see which agents have a strong market
presence there. Or you can talk to people you know.
"The first thing I would tell anyone looking (to make a long-distance
move) is to talk to an agent they know and have confidence in," says Barbara
Alexander, owner-broker of Howard Hanna Premier Properties in Morgantown, W.
Va. "Ask them if they can refer you to an agent who works (in the area
to which you're moving). Always use your sphere of influence first -- an agent
you know, family or friends -- to get a recommendation."
The Lewises found that such recommendations don't always work.
They hired an agent who was a friend of Carolyn's brother.
"There are real estate agents and then there are real estate
agents," Carolyn Lewis says. "She didn't have a clue to what we wanted."
The couple wanted a rural house on a few acres. "But she
would take us to a house in a suburb with a swimming pool." They eventually
fired the agent.
This points out a common problem that buyers have, says Laura
Kovacs, relocation director of Realty Executives Relocation Services in Phoenix.
"They talk to one particular person who was recommended and
feel uncomfortable stretching their research even farther. They need to search
till they find someone that they're comfortable with. These are lifelong decisions.
So you need to be happy with the person you're dealing with."
That's why she, Alexander and Phipps all stress that the next
step after getting a recommendation is to interview the agent.
"Much of the successful relocation experience is predicated
on the specific agent," Phipps stresses. "(So) it's fitting and appropriate
that you interview (the agent)."
The first criterion to consider is whether the agent or agency
specializes in relocations, Phipps says. Then find out how the agent will go
about scouting properties for you, how the agent views his or her role in the
relocation process and how the agent will be compensated.
"Those are all legitimate questions," he adds.
Alexander adds that it used to be that real-estate agents were
all seller's agents, so it's important to be sure that you find an agent who
will represent your interests as a buyer.
But make sure you know the rules. When Alexander enters into an
agreement as a buyer's agent, she explains to her client that if the transaction
itself does not pay her fee or pays only a portion of her fee, then the buyer
will pay her the whole fee or the portion not paid by the transaction. That
scenario is very unlikely unless you're dealing with a sale by an owner. No
matter on which side of the closing ledger the funds to pay the buyer's agent
are listed, Phipps says, "The reality is that the buyer is responsible
for the buyer agent's fee."
But the interview is not just about finding out what the agent
will do, it's also about the agent learning what you want. "You need to
know the person not only listens to what you're saying but hears what you're
saying," Phipps says. "The best agents are excellent listeners."
So explain what you're looking for as far as price range, types
of houses you want and amenities you'd like. You'll want to talk about the cost
of living, taxes, utilities, motor vehicle fees and local rules of the road,
post offices and shopping. If you have kids, you'll want to ask about the schools.
If you have pets or large animals, like a horse, you need to know the rules
that apply to them.
If you have particular interests -- nightlife, concerts,
theater, athletic activities or anything else -- you should ask about the opportunities
to enjoy them in your new community. (If you're using a relocation specialist,
the agent should have a packet of relocation information ready to send to you.)
Sometimes the issue of finding an agent is moot. "If it's a corporate move,
usually (the buyers) have no say in who they're going to be meeting with,"
Kovacs points out. "It's going to be handled by a relocation service the
company hires, and they're going to be assigned a Realtor."
Sometimes people may buy a house sight unseen based on their
trust in the agent, but agents generally say it's best to make at least one
trip to your new community to get a feel for what neighborhoods and properties
appeal to you.
"I would never go anywhere sight unseen," Alexander
says. A real estate agent "can't go to the schools for you or walk downtown or
talk to other people for you."
"I think it's important to talk to a financial professional
before you go out to look at houses in a new community to give you an idea of
what you might be capable of doing based on your job and financial position,"
Kovacs adds.
Chances are that the reason you're moving -- whether you're going
to a new job, moving to an area because you want to or retiring to a new community
-- will have some effect on your financial condition and, obviously, the type
of house you can afford, she says.
What it comes down to is that buying from a distance is
easy as long as you do your homework.
-- Posted: July 1, 2003
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