Buyer’s FAQs

1. Q – How long have you been in the real estate business?
A – I got my Michigan Broker’s License around 1967, but I have worked in new construction for several years as well.

2. Q – How old are you?
A – I’m a young sixty-two.

3. Q – How many houses will you sell this year?
A – Around 150 or so with the way the market is going.

4. Q – How many homes have you sold altogether?
A – I am working on a count for you. I know that one year, the President of Real Estate One said “she sold enough to average one sale per day for the year”.

5. Q – What areas of Michigan do you work?
A – Southeastern Michigan, basically the entire Oakland county. I’ve lived here a long time, so it’s easy for me to know everything about the area. My office is also convenient for all areas. Plus Real Estate One has offices all over Michigan and we are welcome to use each other’s sister offices.

6. Q – Do you represent both buyers and sellers?
A – Yes, though I often represent one more than the other. I am currently the #1 Agent for Real Estate One in Oakland County for this year, but that could change.

7. Q – What exactly is a Buyer’s Agent?
A – When a licensed agent or broker (such as me) has a long enough career to have developed a unique comfort zone or specialty with the buying side of a transaction, they are said to be a Buyer’s Agent. Buyer’s Agents are becoming more and more of a specialty.

8. Q – What’s the difference between an agent and a broker?
A – Not a whole lot. More education and two year’s sales experience, basically. A broker can have salespeople work for them and every real estate office has its own “broker of record”. There are many good agents who are not brokers.

9. Q – Does it cost me any more to work with a Top Buyer’s Agent?
A – No.

10. Q – What do you think of “For Sale By Owner” properties?
A – They’re not as common as they were back in the 80’s. With the average price here, FSBO’s are quite unusual and the Help-U-Sell companies are few and far between. If you find a For Sale By Owner property, I generally advise you to just be careful. Obviously if it’s a friend or family member, you should have more trust. Other than that, most companies train their agents to use extreme caution when a seller — for whatever reason – tries to operate under the usual radar. Any honest agent will probably tell you the same thing. Sometimes, but not always, a FSBO will have a disclosure issue or another reason not to deal with agents. Getting involved with someone like that can lead to a slippery slope. There are transaction fees with just about every large financial decision in life and real estate is no exception. They’re in place to successfully and — most importantly — legally close a transaction. There are around 75-100 pieces of paper to sign. Someone has to take responsibility for them and that person should be licensed by the state.

11. Q – Where are Oakland prices going?
A – Down, most likely, much as they have been since 2004. However, now is the best time to buy a home in Oakland. I have every confidence that things will turn around, and meanwhile, look at the buys you can get right now. No give-aways but “good deals”.

12. Q – I’m afraid to buy now as it feels like I’m still buying at the top.
A – A very common question, so you’re not alone. Don’t worry, you’re not buying at the top; the year of 2006 could be the best year in Michigan to purchase a home. Sellers are adjusting to the fact that prices have reduced and job changes have made a difference in the sale price of many sellers. I have watched super good deals happen all around. Sellers are not giving them away, but there are great deals to be found.

13. Q – Okay, so prices are just going down. How much?
A – I don’t know, but according to the charts, prices have gone down an average of 6% a year for the average size house since 2004. Interestingly, the cheaper ones have only gone down only slightly, but the really expensive ones have gone down significantly more. A lot of people want to live here, and we are a county with a fixed supply and a very high demand. You decide. When the market comes back, the higher price range homes will be the first ones to go back up. This again makes it a Great Time To Buy!

14. Q – Aren’t you saying that because you’re an agent, you get paid if I buy?
A – A fair question, but look at the big picture. I’ve got a fourty year career at stake with hundreds of loyal clients and more coming on board every day. Given my small piece of the pie in any sale, I’m not going to risk my livelihood by giving you inaccurate information.

15. Q – How is a real estate commission divided up? Do you get the whole 6%?
A – Sadly, no. If I did, I could maybe cut back to six days a week. First, commissions have dropped over the years down to 5.5%, and rightly so. That 5.5% is then divided between both the listing agent (2.5%) and the selling agent (3%). That is then split between my office and me. My Assistant gets part of that and my Accountant gets some for my monthly expenses and some for the tax man. I’m left with generally a smaller amount of the original commission than you may have supposed. Any top agent’s pay on a gross commission is around 1.75% of the sales price on any transaction.

16. Q – Is there any advantage to waiting if I’m not ready to buy now?
A – Maybe. Your biggest risk is that prices could go up again, making your desired house more expensive next year than this. If you’re thinking prices might drop, that’s even riskier. Some of the cities in Oakland are basically no growth, with no more large parcels of available land to build on, and a tremendous built-in desire for people trying to buy here. I’m no economist, but it seems like a pretty safe bet to me that property will enjoy steady appreciation in the future. Remember, you don’t want to buy in any area where they’ve seen a recent huge jump in prices. That’s dangerous, much like buying a stock that’s just gone up 100% very quickly.

17. Q – Do you consider yourself a “salesman”?
A – Not really. Part of my job is to counsel you. That means everything from helping you move towards a house that is a good deal, to advising you against a house that is not. I’d never give you bad advice and give up a fourty year career for the sake of my fractional end of a commission. It’s just not worth it. I will always be honest with you, like it or not. That’s my promise.

18. Q – Do you buy property yourself?
A – No. My philosophy is to offer the good opportunities to my clients first. Should they all pass, I might buy it myself. But, I usually have a client willing to buy them, so I don’t have to worry about that conflict of interest. I currently own just three homes; one in Rochester Hills and two vacation homes for the entire family.

19. Q – Where do you live?
A – I live in Rochester Hills, about ½ a mile from my main office. We have raised three wonderful children, and now have seven wonderful grandchildren. I have lived in Oakland County all my life and know most areas very well.

20. Q – How much longer do you expect to work in real estate?
A – Until they kick me out, or until I stop having fun, whichever comes first. Even though it’s pretty much a seven day a week job, I really enjoy it and have never really considered doing anything else. My daughter Paula and husband Pete have worked with me for around fifteen years and will take over some day should I wish to slow down. Until then I will continue working with them and the grandchildren as well. I now have a twenty year old grandaughter and she is showing sure signs of being a great salesperson as well.

Linda Rea
Real Estate One
Rochester/Troy offices

Phone: 248. 652.0372
Mobile:248.709.3786
Toll Free: 800. 882.6965
Email: linda@lindarea.com

Linda Rea is a Top Real Estate Broker and Buyer’s Agent for Real Estate One, the #1 company in Oakland County. She has been licensed since 1966 and is one of the most successful brokers in the county. She is a native to the area and can answer any question you may have about Oakland. She works seven days a week and is always just an email or phone call away. Reach her TOLL FREE on her cell phone at 800.882.6965 248 709-3786

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