Connecticut Real Estate Blog - Real Real Estate in CT

• Know whom the agent represents. Real estate agents can work for the seller, the buyer or both.  In order for an agent to represent you in a home purchase, the agent will have you sign a contract.  Without a contract, an agent who shows you homes or greets you at an open house does not work for you – he/she works for the seller. 
• Hire a buyer’s agent to represent you. To find a buyer’s agent, visit www.rebac.org (Real Estate Buyer’s Agent Council) and/or www.naeba.org (National Association of Exclusive Buyer Agents).  Each site has a free referral service to consumers.
• What percentage of your agent’s business is working with first-time homebuyers?  It should be all or most of the agent’s practice. And because many first-time homebuyers obtain financing using government programs, make sure the agent knows about these programs. 
• Real estate agents must be licensed in Connecticut.  To verify a license and check complaint/discipline history, visit www.ct-clic.com.  Furthermore, your agent should be a Realtor®, which means that they are a member of the local board of realtors and have access to the multiple listing service where most homes for sale are listed.  To verify that an agent is a Realtor®, contact a local board of realtors such as the Greater Hartford Association of Realtors at www.gharonline.com. 
• Ask the agent to provide references from other recent first-time homebuyers in your area.

Lender.  This is the relationship that will last the longest, possibly thirty years, and will have the most impact on your wallet.  While your interest rate is very important, also consider the reputation of the lender, how the lender responds to your questions and the location of the lender.  You need to be able to rely upon your lender to be available when needed (nights, weekends) and to be responsive to your needs.

• Ask your agent or attorney for lenders.
• Search for rates on-line at www.bankrate.com or www.hsh.com.  Your local paper’s real estate section will also publish rates.  Check local banks or credit unions, too.
• Consider using a mortgage broker.  A broker has access to more loan options than most banks.  The downside is that their fee, which is paid by the actual lender, may get passed on to you.  Check with the National Association of Mortgage Brokers at www.namb.org for local members.
• Review all the loan terms before making a decision.  Each lender will have a unique set of services and fees –  such as points paid at closing, type of loan, private mortgage insurance, prepayment penalties, and rate lock-in fees and time period, to name a few.   The Federal Trade Commission has a wonderful lender checklist for consumers on their website: http://www.ftc.gov/bcp/conline/pubs/homes/bestmorg.htm. 

Appraiser.   Before the lender will actually lend you money to purchase your home, they want to make sure that the property is worth at least the amount of money you are borrowing against it.  Your lender wants to make sure that the property will sell for at least the amount of money it is lending.   Although an important member of your team when buying a house, you may not choose your own appraiser.  The lender will have a list of appraisers in your area and will select one from their list.  Appraisers are licensed in Connecticut and will have completed coursework and will have served as an apprentice.  The appraiser should be an objective third party, someone who has no financial or other connection to any person involved in the transaction.   Real Estate Attorney. In Connecticut, an attorney is required to represent the interests of the home buyer at the closing.  But don’t wait until you have signed a contract to buy a home to find an attorney.  Your attorney is the only member of your team who can provide legal advice related to contract negotiations and obligations, among other issues, and are therefore valuable before you have a signed contract to purchase. 

• Ask your agent or lender for a reference.
• Check the Connecticut Bar Association’s website at www.ctbar.org. 
• Make sure the attorney specializes in real estate law.  
• Ask to meet with the attorney for a complimentary consultation to discuss fees for handling the closing and what services are included in their fees.

Home Inspector.  Check with your agent for referrals.  While not all qualified inspectors belong to the American Society of Home Inspectors (ASHI), a national organization that enforces a code of conduct and practice standards, their website, www.ashi.org., has a referral service.   Your inspector should be licensed to conduct home inspections in Connecticut and should have training and or experience in building and construction standards as well as experience as a home inspector.  Here are some questions you should ask:

• Is the inspector licensed to perform inspections in Connecticut? You can verify this by visiting www.ct-clic.com.
• How long has the inspector been in business?
• How many inspections has the inspector conducted?   Connecticut requires a minimum of 100 supervised inspections before an inspector can be licensed.
• Can you review a sample report?  What does the inspection cover?
• Can you check with references?
• Does the inspector carry errors and omissions insurance?  Although not required in Connecticut, home inspectors may carry errors and omissions insurance or be bonded which will help protect you if the inspector misses an issue that should have been detected during the inspection.

Insurance Agent.  Before you close on your home, your lender will require that you have homeowner’s insurance.  This policy will protect both you and your lender against losses.  Here are some suggestions when selecting an insurance company and policy:

• Check with your current insurance provider or agent.  If you already have auto insurance, your current provider may offer a discount if you also obtain homeowner’s insurance through them.
• Search on-line.  Websites like www.insweb.com offer free rate quotes from multiple insurers.
• Talk to an independent insurance agent.  Independent agents represent many different carriers and can save you time and even money by locating the best policy for you at the best rate.  The Independent Insurance Agents & Brokers of America, www.iiaa.org, is a great place to get additional information on hiring an agent and offers contact information for local agents.
• Go direct.  Companies like Amica are direct writers, meaning that they don’t use insurance agents to sell insurance.  This may translate into savings for you.
• If you belong to a union, trade or professional association or other group such as an alumni association or credit union, you may receive a discount on your coverage.  Be sure to ask. 
• Don’t only look at price. Research the company’s track record on handling claims.  Check with www.consumerreports.org or ask the insurer directly how long their average turn-around time is for processing claims – the shorter, the better.  Also look at the company’s financial stability.  If the company is weak financially, they may not be able to pay your claim when you need it most.  Your insurer can tell you how they’re rated.  They should be rated A or better by Standard & Poors or AA or better by Moody’s. 
• Get rewarded for good behavior.  You can save money by installing smoke detectors, a security system or deadbolt locks.  Good credit can also lower your rate. 

Jessica P. Beganski is a licensed Realtor ® with A Buyer’s Market, LLC.  She may be reached at (860) 648-9637 or
jessica@buyeragentct.com