Buying a home is not an easy task and is one of the biggest financial decisions of your life. When you’re ready to buy a home, it’s important to find a real estate agent with the right experience to guide you through the process.
There is no shortage of agents vying for your business via online advertising, yard signs, and even billboards. Also, with so many experts out there, finding the right one can feel overwhelming. Follow these seven steps to learn how to find a good real estate agent and hire the best professional for your purchase.
1. Get pre-approved for a mortgage loan
In some cases, homebuyers hire a real estate agent to begin their home search in earnest before consulting with a mortgage lender. But before you talk to anyone else, it’s wise to talk to your lender first to find out how much you can spend on a home.
Getting pre-approved for a mortgage tells you the maximum amount you can borrow and identifies any issues you need to address early in the process. This will help you choose a home in the right price range for you. Plus, it shows both the agent and the seller that you’re a serious and qualified buyer. In competitive markets, a pre-approval letter may also be required for the seller to consider your offer.
2. Ask friends and family for referrals
Ask people in your network if they can recommend an agent with good experience. Ideally, you want someone who has experience working with clients in situations similar to yours. For example, the needs of a first-time homebuyer are different than those of a repeat buyer or a homeowner looking to downsize. Apartment specialists also have a different type of knowledge than agents who specialize in single-family homes.
Many consumers are looking for a real estate agent who is a real estate agent with a capital R. This means that they are members of the National Association of Realtors (NAR) and have, among other things, formally agreed to abide by the organization’s Code of Ethics. . Some real estate agents have certifications that indicate they have completed training in a specific specialty. The designation includes:
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CRS (Certified Housing Specialist): Completed additional training on handling residential real estate
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ABR (Authorized Buyer Representative): Completed additional training to represent buyers in transactions
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SRES (Senior Real Estate Specialist): Completed training aimed at supporting sellers and buyers over 50
But whether or not an agent is also a real estate agent, an agent is a qualified professional with the ability to facilitate your home purchase.
buyer’s agent and seller’s agent
Also, understand the difference between a buyer agent and a seller agent. A buyer’s agent represents a home buyer in a real estate transaction, while a seller’s agent or listing agent is responsible for the seller’s side, including pricing and marketing the home. Many agents do both, but some specialize in one or the other. In some cases, one agent may be able to represent both parties, which is known as dual agency. Some states may not allow dual agency, which can come with inherent risks, so keep that in mind if you’re considering agreeing to this arrangement. You may also come across referral agents who provide leads to other agents for a fee.
3. Research potential candidates
If you’re considering a particular agent, start by looking at their online presence. Check your website and social media accounts to note if deals have closed in your particular area.
Also check out our online reviews. One or two negative reviews are nothing to worry about, but more can be a red flag. Also, be sure to check with your state’s real estate regulator to find out if the agent is licensed and to see if there are any disciplinary actions. You can also vet candidates being interviewed on your local Better Business Bureau’s website to see if they have received any complaints.
4. Interview at least three agents.
The interview is an opportunity to learn about the agent’s work style and experience. You want to find someone who is knowledgeable in your specific field and understands your budget and needs.
“Look at how polished and professional their proposals are,” says Katherine Hutt, president and founder of Nautilus Communications and former chief communications officer of the Better Business Bureau. . “The more effort they put into the presentation for you, the more effort they will put into the presentation when they’re working for you. You need someone who is really knowledgeable.”
Questions to ask prospective real estate agents include how long they’ve 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 typically work with buyers before closing on a home. will appear. We also explain the typical price range and neighborhood of the homes we help buyers find, how we help buyers stay competitive in this market, and what our fees are. It’s also a good idea to ask.
If you’re a first-time buyer, ask about their experience helping other buyers who fall into this category and the type of guidance you can expect during the process. The same applies to other special scenarios, such as moving out of state or purchasing through foreclosure.
The interview also gives you the opportunity to learn about the agent’s preferred communication methods and how they handle them. For example, if you’re most comfortable sending text messages and plan on visiting your home after work hours on weekdays, you’ll want an agent willing to do the same.
5. Request and review references
Ask the agent you’re interviewing to provide information on homes they’ve listed and sold in the past year, as well as contact information for at least a few recent clients. Contact those clients to see their experience and the type of support your agent provided throughout the process. Ask if you would hire the agent again for your next real estate transaction.
6. Trust your intuition
Above all, work with an agent you trust and feel comfortable trusting, even if the road to closing is a little bumpy. If someone gives you a bad vibe during an interview, there’s little chance that will change once you start working together.
“It’s just like dating: Sometimes it comes down to chemistry,” says Herman Chan, an associate broker and real estate agent at Golden Gate Sotheby’s International Realty in Berkeley, California. “Even if everything is going well, if you don’t get the vibe with that person, don’t go with them. There are many other real estate agents who would be a better fit and would be happy to help you. there is.”
7. Look at the contract carefully
Once you’ve selected an agent, your contract should spell out all the terms you agreed to, including the real estate agent’s commission. But traditionally, this fee is paid by the seller, not the buyer. Half of the 5-6% of the home’s sale price is paid to each agent. However, commission rates are often negotiable.
Another factor to look at is the length of the contract itself. If possible, aim for a contract within six months. According to NAR data, homes sold in October 2023 typically remained on the market for just 23 days, and 66% remained on the market for less than a month. If you don’t find the home you want within a few months, it helps to keep your options open.
conclusion
In today’s tough housing market, where low inventory and high prices can severely limit your purchasing options, having a trusted agent by your side can make all the difference. Follow the steps above to find the right real estate agent for you and start your journey together to find the right home at the right price.
FAQ
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What should I pay attention to when choosing a real estate agent?
When comparing real estate agents, focus on their qualifications, reputation, and expertise. Real estate is so localized that you need someone who is familiar with your specific local market. You should also look for someone who, if possible, has a track record of successfully negotiating and closing deals on the type of home you want to buy. For example, if you want a condo, look for someone who has experience with condos.
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What percentage commission do most real estate agents take when you buy a home?
Typical commissions in real estate transactions range from 5% to 6% of the home’s sale price, split evenly between the seller’s agent and the buyer’s agent. Therefore, if the home sold for his $350,000, each agent would receive his $8,750 to his $10,500. However, the amount of the fee is often negotiable, and it is usually the seller, not the buyer, who pays the fee.
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Is it possible to buy a house without using a real estate agent?
yes. Although there is no legal obligation to hire an agent to help you buy a home, it is usually in your best interest to do so. Agents are licensed professionals. They know the market inside out and can provide critical support in both the home search and deal negotiations. This includes submitting an offer, reviewing the purchase agreement, coordinating the closing, and more. Plus, if you run into any hiccups along the way, you’ll have a smooth ride along the way. In fact, according to NAR data, 89% of home buyers in 2023 used a real estate agent.