Real Estate Agents
How Do I Choose A Real Estate Agent?
Selecting a real estate agent may be the most important decision you make when you buy a home. And it does not matter whether you are a first time buyer or if you have bought and sold many homes. Good real estate agents can mean the difference between getting the right home and the wrong one, paying a fair price versus too high of a price, and peace of mind during the process versus watching your stress levels, and your blood pressure, rise beyond healthy levels.
As a buyer, you need a real estate agent as a guide. This is someone who will listen to your concerns, help you weigh your wants and needs, and then lead you through a minefield of common mistakes that inexperienced—and overconfident—buyers often make. Let’s talk a little about what makes a real estate agent a “good” agent.
First, you need to understand what a real estate agent is. First and foremost, real estate agents are salespeople. This means that they get paid only on the completion of a successful transaction. For a buyer, the services of a real estate agent are paid by the seller at closing as part of the transaction—in other words, the services of the agent are essentially free to the buyer. In most instances, it is simply one of the costs of selling a home. Even in the case of a For Sale By Owner property, most sellers will gladly pay the buyer’s agent fee for bringing the buyer to the deal.
So now that we know that a real estate agent is at no cost to the buyer, how do I choose one? The key is to make a list of what you expect from the agent. For example, if you are a first time home buyer, you may want an agent who can serve as a mentor. Top producing agents may not be a good fit for you–they are busy closing transactions and do not have the time for hand-holding and educating clients.
On the other hand, if this business is old hat to you, you may want someone who is all business. So an agent that specializes in first time buyers will probably not meet your needs—you probably don’t want the hand-holding. So knowing exactly what you want is the first task at hand.
When you have defined what you want, you can start talking to people who have purchased a home. A five year old referral is no help, so focus only on people you know who have bought within the last year or so. People that are happy with their agent will gladly offer a referral. Be specific in your conversations and focus on the transaction itself–not the agent. You are interested in the agent’s work, not necessarily how nice and personable the agent was. Did the transaction go smoothly? Did the agent handle issues efficiently and quickly? Was all paperwork on-time and accurate? Was the agent’s advice on-target, clear, and precise?
After you have selected two or three agents, meet with them at a neutral site and don’t be afraid to put them on the spot. Present a scenario or two about buying a home and see if their answer matches yours. A great question is: “if we find a great home but the seller is not willing to come down in price, will you be willing to cut your commission to help us get the property?” It’s a tough question, but it can tell you a lot about the agent. Let’s face it, if the agent will give away their own money so easily, what makes you think they will be more careful with yours?
In the end, the agent you choose should match up with your expectations. And remember, although you are not paying them directly, you need to hold them accountable for their performance. Your home and your mortgage is one of the biggest decisions you will make, and it starts with choosing the right real estate agent.
