HUD Settlement Cost Booklet
The HUD Settlement Cost Booklet was revised on 12/19/2009: "Shopping For a Home Loan - HUD's Settlement Cost Booklet". One of the most important changes in the HUD Settlement Cost Booklet involves the section, "IV. Shopping for a House - Role of the Real Estate Agent or Broker."From the Settlement Cost Booklet, "Frequently, the first person you consult about buying a home is a real estate agent or broker. Although these agents and brokers provide helpful advice, they may legally be representing the interests of the seller and not yours. You can ask your family and friends for recommendations." Continuing from the Settlement Cost Booklet, "It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an “exclusive buyer’s agent”, who will be working for you." (Note: the above section in bold is also in bold in the original document. Working with your own exclusive buyer's agent is important enough that HUD, the US Department of Housing and Urban Development, added their recommendation to use an exclusive buyer's agent and put that statement in bold. We think that is significant!) (Note: Also, we don't recommend asking your friends, family, or co-workers for recommendations. Why? Because they may be misinformed. Read more....) Check out the other sections of our website for more information about using your own agent and the recommendation to use an exclusive buyer agent from the HUD Settlement Cost Booklet: In the section, "Buyer Agent", you will learn more about the concept of exclusive buyer representation and exclusive buyer agent and buyer broker and what makes an agent, an agent - i.e., fiduciary duties. In the section, "One Date You Are Married", you will get a behind-the-scene's look at a little known concept referred to as "procuring cause". This is a concept by which an agent you make contact with can later claim they are due a commission on a home that you buy through another agent. In the section, "Agency Disclosure", you will read about the various agency disclosures that states have and the different relationships you can have with an agent. In the section, "Buying a Home Without a Realtor", we will explore the concept of buying a home fsbo, or in other words buying a home that is for sale by owner without using the services of your own agent. Locating the right agent is explained in the section, "Find An Agent". Need help finding an exclusive buyer agent to assist you in buying a home? Click here for a free service to find an agent anywhere in the country. We also provide a list of "20 Questions to Ask an Agent", with explanation why the question is being asked and what you should look for by way of answers. There also is a 3 page worksheet available to use when interviewing agents. If you have any further questions about the recommendation from the HUD Settlement Cost Booklet to use an exclusive buyer agent, please click here to email us your question. Tom Wemett has been an exclusive buyer agent since 1992 and a founding member of NAEBA, the National Association of Exclusive Buyer Agents, as well as the National President of NAEBA in 2003.
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