Real Estate Insights

Finding the right Buyer’s Agent: Remember you want an agent that can help you find the best property for you.

Get pre-qualified. Always, always start with getting pre-qualified for your upcoming purchase. This will help you narrow down a price range and will save you and your agent a lot of time.

Your next step is to do your research. Ask friends, family, and coworkers if they have anyone they would recommend. Also ask if they've heard any horror stories about agents in the areas that you are looking. You can also check yellow pages and the Internet to find your agent as well. A simple Google search will turn up multiple results in the zip code or the area you are looking to move to. If you are relocating to a new area then you may want to look for a relocation specialist, however, lots of so called relocation specialists exist, but many agents are not. Follow the interview suggestions below to help you determine who the true specialists are.

You may also find a real estate agent by calling on properties you see for sale in the areas you are thinking of relocating to. Keep track of who you have been in contact with and who seems the most confident and knowledgeable.

Make contact. After you have narrowed down a few potential candidates, call them and set up interviews. Remember that you are free to hire whichever agent you choose. Don't let high pressure sales or scare tactics force you into an immediate decision. Feel free to let them know that you have other candidates you are meeting with to consider.

During the interview, consider these items:

• How much experience does this agent have in the field? Years of experience could mean they have years of success in the business. But keep in mind that newer agents may have more enthusiasm and time to spend with you than more experienced agents who tend to stay busy. Also, these days’ newer agents must attend vigorous training and educational classes before they can practice real estate and many of these agents will have more experienced agents overlooking all their transaction for the first six months of their careers. Keep in mind that more than 80% of new agents wither make it or break it by 18 months, so if an agent has been around for at least this long then you can count on them to stay in the business for a while. 

• What organizations do they belong to? Are they a Realtor? A Realtor is a member of the National Association of Realtors (NAR) and according to their "Guide To Buying A Home," coming out this summer, "These professionals agree to abide by a higher standard of practice known as the REALTOR Code of Ethics." Are they a member of any other local, regional, or national organizations for real estate agents?

• What degrees and certifications do they hold?  For example, the may be a Certified Residential Specialist, or have a CRS designation, which means that they have attended specialty courses which may further distinguish one agent’s knowledge from another’s.  

• Do they possess critical local knowledge? Ask them what the market conditions are like in your area. If they can't give you an immediate, factual response, this could be a tell tale sign of problems to come down the road. Also, are they aware of any potential problems in the areas of interest to you? For example any special bonds or tax assessments, drinking water, sewage or other hazards?

• What percentage of the real estate commission do they expect to receive from this transaction? Is this amount negotiable? Will they consider helping with any of your costs? A lot of real estate agents these days offer to pay some or even all of their clients closing costs and financing costs.

• Dual Agency. Will they possibly be representing the sellers, too? While this is perfectly legal, it must be disclosed -- and because of human tendency -- biases could exist. Do you want someone in your corner or the sellers? If a dual agency exists who will it benefit most? You want an agent to tell you upfront what his total commission will be from selling you the home and he/she should be able to get the home for under the list price.

• Home Search. What is the agent's plan for finding you a house? (a.k.a. How will they earn their commission?) Will they allow you to accompany them during their search of the local MLS? Will they be sending you updated listings in the local market? Do they limit the number of homes they show?

• Availability. How can you contact your agent and during what hours? What if you find a house online that you really love -- but it’s a Saturday afternoon? Will you be able to call your agent then? Will phone calls and emails go unanswered until Monday at noon? This would be a great time to ask if the agent is full or part time. Part time may mean they are more difficult to schedule with or get in contact with.

• Negotiating Skills. How well will they perform to get the home of your dreams? What are their strongest negotiating skills or tactics that they have used in the past and how have they worked? Will they personally present your offer to the listing agent and the seller or will they just fax the offer to some obscure number and rely on the listing agent to convey your offer to the sellers? In today’s market it is not always practical for a buyer’s agent to present offers in person anymore, but you want to make sure you choose an agent who is not afraid to meet with the listing agent or sellers in person.  You want to make sure you can get a good feel for their negotiating skills before you hire them to negotiate for the home of your dreams, or you may just find that dream slipping away.

• Escrow Process. Will your agent keep you update to date once you have made your offer and are now in contract? The escrow process can be more crucial than the searching process. There are strict time lines and contingencies built into a sales contract. You want to make sure that you meet your contractual obligations on time or the seller may be able to back out of the contract and sell your dream home to someone else. And if you must back out of the contract for any reason, you may have to forfeit your good faith deposit. Make sure your agent has experience and is knowledgeable with the escrow process before you get into contract.

• Good coordinator. Do they coordinate their own escrows or do they rely on assistants? You want your agent to be a good coordinator during the escrow process. There are a lot of inspections to complete and for you to review prior to releasing your contingencies to the purchase contract. Contingencies are a fail safe clause built into the contract that allow the buyer an investigation period so that if during the contingency period anything is discovered (termites, wood rot, or other) that was not disclosed or does not meet with the buyer’s satisfaction, the buyer may cancel the contract without penalty.

It is important for you to not only feel confident in the agent's abilities, but to feel they are easy to talk to and get along with. If you can't negotiate or talk to them during an interview, don’t count on being able to later when you need to express concerns.

In the end, hiring an agent instead of going it alone can save you money and time. Agents are probably more skilled at negotiating and completing the necessary paperwork that go along with this transaction, and they also have a wealth of knowledge about the market at their fingertips.

Happy House Hunting!