What to look for in a real estate agent and what to know?
Posted on November 30th, 2009 in Renting & Real Estate | 4 Comments »
m asked:
We are at the absolute beginning of the home-buying process and recognize we need a real estate agent. What do they do for you? What fees are associated with a real estate agent? What should we know?
Huntsville Real Estate
We are at the absolute beginning of the home-buying process and recognize we need a real estate agent. What do they do for you? What fees are associated with a real estate agent? What should we know?
Huntsville Real Estate
4 Responses
Malibu Real Estate
First, you need to know that most real estate agents are paid by the SELLER – so they do not really work for you. To find a good agent, talk to others you know who have been through the process. Look for agents who are active in the area where you want to buy. Ask for and check on references. And finally, try not to get emotionally caught up in the purchase. Stay objective – there are lots of good buys out there.
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The beginning of the process is to see how much of a mortgage you can qualify for. Once you know this you can look at areas in your price range. This is a good time to get a real estate agent to get you a list of homes in the area of your choice and price.
Real estate agents can sort through the hundreds of homes for sale and narrow it down to what you what to see. Agents will schedual times to view homes. Agents will give you detailed full features sheets of each home you view. Agents will do market valuations of homes to verify the market value. This will give you an atvantage when putting in your offer. Agents will write up the purchase agreement and present it to the owner/owners agent and negoitiate . Agents will followup on the conditions and make sure they are complete and removed on time. Agents will make arrnagements to have all documents delivered to laywer. Agents will make arrangements to get keys on possession day. And much more,
Mesa Real Estate listings
M, you need someone you trust. Ask family, co workers and friends who they might recommend. Or you could visit open house and talk with the Realtor attending. If you find one you feel comfortable with, ask them to help you. The seller typically pays the realtors involved in a transaction. You can pay them yourselves if you wish. They should be very familiar with existing sales, short sales and foreclosures and the various processes those types of transaction take. Your realtor should work only for you, and not the seller. While most can and do handle both sides of a transaction, your first time out should be with someone who has your interests first.
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These are some very good questions to ask your agent:
Q: Does your agent mostly work with buyers or seller?
Lot’s of agents know how to list homes on the MLS but really **** when it comes to finding homes for their clients. Some agents are really good at finding homes and don’t have many listings. Some are good at both.
Q: Does the agent own her own home.
A big red flag here if your agent doesn’t own real estate themselves then don’t use them. How can they possibly be looking out for your best interest when they don’t even own their own home. This is more common that you might think. Many agents getting started out and even some experienced ones do not own real estate and are clueless about many of the problems that come with home ownership.
Q: is the agent showing you their own listings?
A commission is split 50/50 between the buyer agents (The agent representing the buyer) and the selling agent (Representing the seller) So on a $100k house a $6k commission is split $3k/$3k to each side. If your agent is showing you their own property they are trying to get you to buy it so they can get an extra big commission check.
In this case do not be pressured into buying it the agent is doubling their commission and this is usually the only motivation for showing it to you and getting you to buy it. If you do end up actually liking the house that you agent has listed ask for a 2% reduced commission. This will lower your purchase price and or be able to get you some or all of your closing costs paid.
Q: Get references
Ask your agent for references and call them this will tell you tons. Calling around and asking lots of questions will tell you much more about your agent than anything else.
Q: Trust but verify
Most agents are highly educated in Real Estate Law but not in other issues. Anything your agent tells you should be trusted but verified. I have multiple times experienced agents telling buyers and seller things that are not at all accurate. I am often consulted with to set the record straight. In fact as I am writing this I have a family member being told to rent their old house instead of selling as it will not affect their current purchase. This is the Agent saying this, however it is not at all true. The Realtor has not bothered to verify this fact with the lender or anyone for that fact. I have had to set the record straight and save this deal otherwise their will be no new home purchase. Agents are not always as knowledgeable as they seem.
Lenders in many ways are far better sources for real estate related questions as they are dealing day to day with the constant changing regulations.
Last but not least “Trust your gut” if something seems off with your agent their probably is something wrong.
Feel free to contact me if you have any questions.