Top 5 things all buyers should know about buying real estate.

1. Sold Property Information and Statistics

Even if they're current residents and know all about the area, buyers need knowledge of what properties are selling for in the area and of the type in which they're interested. Do research and comparables before property showings if possible. But definitely have a set of comparables in the file that show the buyer was aware of the market selling prices before the offer to purchase.

This will inform the buyer(s) of the current market and assure that they make an informed purchase decision.

2. Disclosure, Disclosure, ....Disclosure

Most state regulations are similar on this and quite clear: If you know something about the property under consideration for purchase that would possibly cause the buyer not to make a purchase offer, or that would cause them to adjust the offering price, you MUST disclose it. If you have any doubts, disclose.

Actual Example: Agent showed home to buyers who didn't purchase, but saw large cracks in floors. Months later, another couple were shown the home and it was carpeted. Agent disclosed.

3. Negotiation Process Steps

Your buyer clients need to be taken through the purchase negotiation process with each step clearly explained. This is particularly important in the areas of inspections and repairs.

Tell them that problems discovered and needing repairs will result in further negotiation. The seller may not make the repairs, so allow latitude in your offer prices for work they might have to have done.

Also, if they negotiate a really tight price, they likely will push the seller into a no-repairs stance.

4. Your Duties and Loyalties in the Process

Again, most states are similar and require some type of disclosure document early in the offer process that explains your role and duties to the buyer client.

You must disclose any relationship that could be construed as a conflict of interest, such as a familial tie to the seller or a business relationship with them.

You also should carefully explain your duties and status as an Agent, Transaction Broker or other named status and what that means in terms of your services and liability.

5. Don't Lock the Interest Rate to Closing Date

This might not be a problem in some areas, but can be in many. Closings don't always happen on time. Inspections, appraisals, loan documents or repairs can all be delayed and cause a closing date to slide. Don't lose your clients the home because their interest rate lock expires and rates have gone up. Though it may add to their loan cost, lock the interest rate at least a few days past the scheduled closing.

James Kimmons, About.com