Choosing A Real Estate Agent
When buying a home, it’s important to have a real estate agent who is experienced and will represent your interest and assist you in (1) locating a home that matches your criteria in the shortest time possible (2) assist you in negotiating your purchase and securing it under the best terms possible, (3) someone who will work to educate you (4) and keep your home purchase moving smoothly. Finding an agent who has expertise in the area you are looking is also crucial. Your agent will know the market and work to get you the best deal possible. Buying a home also means wading through a great deal of paperwork and dealing with some procedures that may be foreign to you, such as applying for a loan and comparing loan offers, hiring a home inspector, or what characteristics indicate a community and home represent a good investment. A good agent will have a network off affiliates ready to serve you. Your agent will also help you organize and coordinate all the important elements of buying a home.
One way to choose a real estate agent is to ask friends and family for recommendations. However, if you’re looking in a different area than where that agent normally works, you could miss seeing some homes because the agent isn’t familiar with the area. Another popular option is to locate one online during the preliminary stages of the home buying process, that is when you’re collecting information and educating yourself online. Make sure you interview every agent you consider, and ask them how they will let you know when homes come on the market, which areas of town they specialize in, and if they have experience in your price range. For more info on this subject read Why Buyers Should Hire a Realtor.
Agency… Is ‘Your’ Agent Really Working for You?
When you call an agent and ask them to show you a property they have listed you have to remember that they are always working for the seller — not you — even if they are not the listing agent! (The listing agent is the agent who was hired by the sellers to list their home.)
As a buyer, you are not represented unless you’ve told the real estate agent who is showing you homes that you want that agent to represent you as your “buyer’s agent.” If you haven’t, “your agent” has no fudiciary duty or other legal obligation to you and your interest, and could in fact be working for and representing the seller.
Why choose a buyer’s agency? While any agent will arrange property showings, suggest sources of financing, provide accurate information, explain the forms and agreements, and monitor the entire process, a buyer’s agent should perform services for you that the seller’s agents can’t, such as show you reasons not to buy a particular property; negotiate the best price and terms for you; include contingencies in the contract that protect YOU rather than the seller; and keep confidential any information that could hurt your bargaining position. Furthermore, there is NO COST TO YOU for the representation your buyer’s agent provides. You heard that right, you do not pay your buyer’s agent’s commission, and rather it is the listing agent that pays this expense out of the listing commission s/he has negotiated with the sellers, a fee the seller is legally obligated to pay regardless as to whether a buyer’s agent is involved. For more on this topic read Who Pays the Real Estate Agents.
Real Estate Agent vs. Realtor ®
Two good questions to ask upfront are whether the agent is licensed to sell real estate in the state where you want to buy a home and whether the agent is a Realtor®. While many people call real estate brokers and salespeople “Realtors,” only individuals who belong to the National Association of Realtors® are in fact entitled to be called “Realtors®.” The term is important because members of the trade group are subject to its Realtor® Code of Ethics. Read Why Use a REALTOR When Buying a Home to learn more.
How to assess an agent’s qualifications
Here are some other questions you might want to ask:
- Do you work in real estate full time?
- Do you hold any professional designations?
- Do you belong to the multiple-listing service in the area where I want to buy a home?
- How many buyers have you helped to buy a home in the past year?
- Can you give me the names and telephone numbers of those buyers, so I can ask them about your services?
- How familiar are you with homes for sale in my preferred area and price range?
- Will you be on vacation or otherwise unavailable during the timeframe when I want to buy a home?
- Do you have a partner, associate or assistant who works with you?
- What exactly would you do to help me find and buy a home that will meet my criteria?
Be upfront and honest about your requirements, as there’s little to be gained by withholding information that might help you figure out which agent will be able to help you. Pay attention to whether the agent listens to your needs and is communicative and responsive to your inquires as well. Ask for specific information and examples of how the agent has helped other people in situations similar to yours. The more questions you ask, the better able you’ll be to make a good choice.
Thank you for talking about the importance of being honest when looking for a good real estate agent. It makes sense that doing this can help you make sure the person you choose knows what type of house you want and how to help you.s I see it, taking the time to real online reviews and consult with the BBB can provide the best leads to the bet realtor.
I really liked the suggestion to interview every possible real estate agent that you consider prior to hiring them. What questions would you suggest asking an agent during those interviews? I’d be curious to know since I’m going to be selling my home later this year and would like to work with a real estate agent in order to ensure I sell my house for the greatest amount possible.
My brother is looking for a vacation home. He wants to make sure he gets something that will be a good investment, so he’s looking for a local real estate agent. I didn’t realize how important it is to choose an agent that has access to the multiple-listing service in the area to ensure you see all the potential options. I’ll be sure to share this info with my brother.
Wow, it’s a great article! I especially like the part about checking recommendations while choosing a real estate agent. My grandparents want to move to the countryside, so they’ll definitely need some professional help to organize their move properly. I’ll share these useful tips to make their house searches easier.
I totally agree that it is important to hire an experienced real estate agent that can help you to find the home that matches your needs and wants in the shortest time possible. My fiance and I are looking to buy a house before our wedding 2 months from now. It’s important for us to make sure that we will be able to find the house of our dreams quickly so we can also have the time to decorate it before our big day. It will be beneficial for us to hire an expert that can help us to locate the house that will match our requirements. I will make sure to consider hiring a real estate agent as soon as possible.
Great guide, many people often can’t find a good broker and have to pay more than usual for a particular property.