Buying your first home? I won't let you do it alone

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The answer is nothing. Agents who represent buyers (a.k.a. buyer’s agent) are compensated by the listing broker for bringing home buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers do not pay their agents. 

A buyer’s market is characterized by declining home prices and reduced demand. Several factors may affect long-term and short-term buyer demands like: Economic disruption – a big employer shuts down operations, laying off their workplace.

• Interest rates trending higher – the amount of money the people can borrow to buy a home is reduced because the cost of money is higher, thus reducing the total number of potential buyers in the market. Home prices drop to meet the level of demand and buyers find better deals.
• Short-term drop-in interest rates – can give borrowers a temporary edge with more purchasing power before home prices can react to the recent interest rate changes.
• High Inventory – a new subdivision can create downward pressure on prices of older homes nearby, particularly if they lack highly desirable feature (modern appliances, etc.)
• Natural disasters – a recent hurricane or flooding can tank property values in the neighborhood where those disruptions occurred.

 Many homebuyers make the mistake of obtaining a mortgage pre-approval only after they find the perfect home. A pre-approval should be obtained prior to the touring homes. During the pre-approval process, you will know how much down payment you will need, interest rates, estimated monthly payment and estimated closing costs.