Buying a home is not a small matter; it is one of the biggest financial decisions you’ll make in your life. When you are ready to buy a home, finding a real estate agent with the right experience to guide you through the process is crucial.
1. Get a Mortgage Pre-Approval
Sometimes, home shoppers rent and start looking for a home before speaking with any mortgage lender. But it’s wise to talk to the lender first, before speaking to anyone else, to find out how much you can afford to spend on a home.
Getting a mortgage pre-approval teaches you the maximum amount you can borrow and identifies any issues you may need to work on early in the process. This helps you stick to homes within the right price range for you. In addition, it will show you, agents, and sellers that you are a serious and qualified buyer. In competitive markets, you will likely need a pre-approval letter for sellers to even consider your offer.
2. Ask for Referrals from Friends and Family
Ask people in your network to recommend a real estate agent with whom they have had a good experience. In fact, you want someone who has experience working with clients in situations similar to yours. The needs of first-time buyers, for example, differ from those of repeat buyers or homeowners looking to downsize. A specialist in condominiums will have a different kind of knowledge compared to a real estate agent who specializes in single-family homes.
Many consumers look for a real estate agent who is a member of the National Association of Realtors (NAR) and has formally agreed to abide by the association’s code of ethics, among other things. Some real estate brokers also have certifications indicating they have completed training in a specific area of expertise. These certifications include:
- CRS (Certified Residential Specialist): Completed additional training in handling residential properties.
- ABR (Accredited Buyer’s Representative): Completed additional training in representing buyers in transactions.
- SRES (Senior Real Estate Specialist): Completed training focused on helping buyers and sellers over the age of 50.
But regardless of whether the agent is also a broker, they will be a licensed professional capable of facilitating your home buying process.
3. Research Potential Candidates
If you are considering a particular agent, start by checking their online presence. Review their website and social media accounts, and see if they have closed deals in your specific area.
Also, look at their online ratings. Don’t worry about one or two negative reviews, but if there are more than that, it could be a red flag. Be sure to check with your state’s real estate regulatory agency to ensure the agent is licensed and to see if they have any disciplinary actions against them. You may also want to check the candidates you interview on your local Better Business Bureau site to see if they have received any complaints.
4. Interview at Least Three Agents
The interview is your opportunity to get a feel for the agent’s work style and experience. You want to find someone who is familiar with your area and understands your budget and needs.
“See how polished and professional their presentation is,” says Katherine Hatt, President and Founder of Nautilus Communications and former Executive Director of the Better Business Bureau. “The more effort they put into presenting to you, the more effort they’re going to put into offers when they work for you. You want someone who is really smart.”
Questions to ask real estate agent candidates include how long they have been working as a real estate agent, whether they work full-time or part-time, how many clients they currently have, and how long they usually work with buyers to close a home deal. It’s also good to ask about the price ranges and neighborhoods where they help buyers find homes, how they help buyers stay competitive in this market, and what their commission fees are.
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I was a first-time buyer, so I inquired about their experience in helping others in this category and what kind of guidance you can expect during the process. The same rule applies to other unique scenarios, such as moving from one state to another or purchasing foreclosed homes.
Interviews also provide an opportunity to understand the agent’s preferred communication style and availability. For instance, if you feel most comfortable when texting and expect to visit homes after hours during the week, you’ll need an agent who’s happy to do the same.
5. Ask for references – and check them
Ask the agents you meet to provide information about the homes they have listed and sold in the past year, along with contact information for a few recent clients. Reach out to those clients to learn about their experiences and the type of support the agent provided throughout the process. Ask if they would hire that agent again for their next real estate deal.
6. Trust your instincts
Above all, choose an agent you trust and feel comfortable with if the road to closing gets a bit bumpy. If someone gives you a bad impression during the interview, it’s unlikely that will change when you start working together.
“It’s like dating – sometimes it’s about chemistry,” says Herman Chan, a certified agent and real estate broker at Golden Gate Sotheby’s International Realty in Berkeley, California. “If everything checks out, but you just don’t click with that personality, don’t go with them. There are many other real estate agents who would be happy to help you and might be a better personal fit.”
7. Look carefully at your contract
Once you’ve chosen an agent, your contract should outline all the terms you’ve agreed upon, including the real estate commission. Traditionally, this fee is paid by the seller, not the buyer – between 5 and 6 percent of the home’s sale price, with half the fee going to each agent. However, the commission percentage can be negotiated, and usually, the seller pays it, not the buyer.
Another factor to consider is the length of the contract itself. Try to agree to a limited contract of six months or less if possible. According to NAR data, homes sold in October 2023 remained on the market for an average of just 23 days, with 66 percent of them staying on the market for less than a month. If you don’t find the home you want within a few months, it’s beneficial to keep your options open.
Conclusion
In today’s challenging housing market, where low inventory and high prices can significantly restrict your buying options, having a trustworthy agent by your side makes a real difference. Follow the steps above to find the best real estate agent for you, and together, you can start your journey toward finding the right home at the right price.
Frequently Asked Questions
What should I look for when choosing a real estate agent?
When comparing real estate agents, focus on their credentials, reputation, and experience. Real estate is very specific, and you want someone who knows the market well and can be relied on for critical assistance in finding a home and negotiating a deal. You should also look for someone with a successful track record in negotiating and closing deals, preferably with experience in purchasing homes similar to the ones you’re interested in. For example, if you’re looking for a condo, seek someone with experience in condos.
What is the commission rate that most real estate agents receive when buying a home?
The typical commission in a real estate transaction ranges from 5 to 6 percent of the home’s sale price, and it is equally divided between the seller’s agent and the buyer’s agent. So, if the home sells for $350,000, each agent would receive between $8,750 and $10,500. However, the commission percentage can be negotiated, and usually, the seller pays it, not the buyer.
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Can you buy a house without a real estate agent?
Yes. You are not legally obligated to hire an agent to help you buy a home – but it is usually beneficial to do so. Agents are licensed experts; they know the market well and can provide crucial assistance in finding a home and negotiating a deal. This includes making offers, reviewing the purchase agreement, coordinating the closing, and more. Additionally, they can facilitate the process if you encounter any obstacles along the way. In fact, 89 percent of buyers in 2023 used a real estate agent, according to NAR data.
Source: https://www.aol.com/good-real-estate-agent-buyers-233522370.html
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