Consumer advocates strongly recommend that buyers hire their own agents. They further argue that a coop-fee has already been built-in to the purchase price, and therefore, there is no need for the buyer or seller to incur additional fees when the cooperating agent represents the buyer.

 
Why would a Buyer Agent want to negotiate a lower price for the Buyers?  Won't that reduce your commission?

 
The way a Multiple Listing Realtor Co-Broke normally works is that on a 5% commission* (*used as an example rate only), 2.5% would go to the Listing Agency and 2.5% to the Buyer Agency on behalf of the Homebuyers. The commission is then split again 50/50 between Buyer Agency and the Buyer Agent.

 
Thus for every $1,000 that we reduce the sales price for you, your Buyer Agent's commission will only be reduced by $12.50. It is our job to make sure that you are an extremely happy, fully educated Real Estate consumer.

Depending on the economy, you may find yourself in a buyer's market in which the buyers get the best deals, or you may find yourself in a seller's market in which the sellers get the upper hand. Sometimes, you'll find yourself somewhere in between.

In a buyer's market, there are a lot of homes on the market, and they may take a while to sell. To sell a house, the seller might need to offer a really good price, plus additional incentives such as help with financing. If you're buying a home in this type of market, you can take your time looking and can usually strike a pretty good deal.

In a seller's market, houses aren't on the market for long. In fact, they may sell before they are even listed. Because the market is so strong, many owners will decide to sell their homes themselves; you'll see a lot of for-sale-by-owner (FSBO) homes. If you're selling a house in this market, you're lucky. You'll probably get many good offers and not need to offer any additional incentives. If you're buying a house in this market, you may have to work hard to find a house that you like and can make an offer on before it is sold…To get your offer accepted, you should be financially ready (prequalified). Also, don't expect to submit and have accepted a contract with a lot of contingencies.

One Month Before Moving

Obtain an IRS Change of Address form, call 1-800-829-1040 and ask for Form 3903 to help deduct Moving Expenses.

Gather moving supplies, boxes, tape, rope.
 
If moving far away, make any necessary travel arrangements like airline, hotel, and  rental car reservations. Or plan your travel route if driving.
 
Call a moving company or make truck rental reservations to move yourself.
 
Finalize real estate and apartment rental needs.
 
Place legal, medical, and insurance records in a safe and accessible place.
 
Obtain a Change of Address form to tell the Post Office of your move.
 
Give your mailers your new address:
           Friends and family members
           Banks, insurance companies, and other
                  financial institutions
           Charge card and credit card companies
           Doctors, dentists, and other service providers
           State and Federal Tax authorities and any
                  other government agencies as needed.
           IRS–see note at the top of this post.
You can do this by sending them Address Change Notification Cards or, for magazine publishers and business mailers, by following their change-of-address instructions.
 

Save moving receipts (many moving expenses are tax deductible).
 
Make maps of your new neighborhood to familiarize yourself and your family with your new area.
 
Plan your moving budget
Two Weeks Before Moving

Inform gas, electric, water, cable, local telephone and trash removal services of your move. Sign up for services at your new address.
 
Line up new cable service for your new home.
 
Inform long distance phone company of your move. Sign up for long distance service at your new address.
 
Recruit moving-day help.
 
Confirm travel reservation.
 
Arrange to close or transfer your bank account, if appropriate.
 
The Day Before Moving

Set aside moving materials like a tape measure, pocket knife, packing boxes, tape and markers.
 
Pick up rental truck.
 
Check oil and gas in your car.
 
If traveling, make sure you have tickets, charge cards, and other essentials.
 

If you feel less than certain that you will be able to go through with the purchase for any reason, you can - and should - go one step further. Insist on adding an 'escape clause' to your offer. This allows you to back out of an agreement without incurring any penalty or disadvantage. This clause should be already in the 'Offer and Acceptance' form supplied by your attorney or buyer's broker. If it isn't, ask him how to add it.

Such a clause might state that you will go through with the deal, but only if certain other things happen. For example, you'll complete the purchase provided your partner or mortgage lender or attorney approves it. Remember, this offer document is not the full Sales and Purchase Agreement. That will be drawn up later by your attorney or broker (or approved by him) if your offer is accepted. And, it will spell out in detail the conditions attaching to the purchase.

The escape clause (often called a 'contingency' or 'contingency clause') in the Offer and Acceptance document serves only one purpose, to allow you the right to withdraw without any cost or further obligation to you. This is a matter you should cover in your preliminary talk with your attorney or buyer's broker. At the same time, seek advice on how to go about putting a deposit on the home you select. And keep in mind that an offer to purchase can be withdrawn at any time prior to acceptance, with or without an escape clause.

There is a rule of thumb that says that if you have the capacity to repay the mortgage, you can afford a single-family house that costs up to two and one-half times your annual gross income. (Annual gross income is the amount you make before taxes are deducted.) Like other rules of thumb, this one is handy and can give you a general idea of how large a mortgage you can afford.  But, because it is so simple, it doesn't take into account all the information that will help you feel comfortable with your mortgage payments.

If you are buying a house with someone else (spouse, parent, adult child, partner/companion, brother or sister or other relative), you should consider your co-purchaser's earnings and existing debts as well. Remember, if you apply for a loan with somebody else, you and your co-borrower are both legally responsible for repayment of the mortgage.

Your buying power depends on how much you have available for the down payment and how much a financial institution will agree to lend you.