Step 1: Choose a good realtor
What, Why, How
Practice what you learned
Check your understanding
Do it yourself
Do it yourself
PrintNow it’s time to take action! To find a top realtor, take the following steps:
Step-by-Step Guide:
First, identify potential realtors:
- Ask friends and acquaintances for referrals, especially those living in the neighborhood you are interested in.
- Look for properties that you’re interested in, and the agents who are selling them.
- You can also shop and compare REALTORS® in your area online or look for agents at the National Association of Exclusive Buyer Agents with no obligation.
Then, narrow the field:
- Ask for and check references. Look into the past behavior of the real estate agents you’ve identified by getting references from their three most recent clients and calling these clients to verify that the agents are being truthful about their accomplishments.
- Use a Buyer’s Broker Representation Agreement. In many states the real estate industry has created a Buyer’s Broker Representation Agreement that you can use with an agent. You may want to find one for your state and use it with your broker. See this sample of the form used in California for an example.
- Interview the potential agents. Following are key questions you should ask. Feel free to prepare additional ones as well. Remember: Don’t be afraid to ask an agent hard-hitting questions about his or her services. A good agent will understand your concerns and patiently and thoroughly answer your questions.
- How long have you been licensed as an agent? Are you a REALTOR®?
- How many homes did you sell last year and for what average price?
- How many buyers and sellers are you currently working with? Will you act exclusively as a buyer’s agent in any transactions you conduct with me? Are you willing to sign a Buyer’s Broker Representation Agreement?
- What are your fee and commission structures? Would you be willing to show me ALL the properties I might be interested in, regardless of your commission structure?
- How can you help me afford the home I want?
- Use your common sense and be a skeptic
Use the skills you have been perfecting all of your life when evaluating people. After you’ve interviewed the potential agents, review what was said, and ask yourself this simple question about each point: “Does that make sense?” Eliminate agents you think didn’t make a lot of sense during the interviews.
Once you’ve chosen an agent, remember:
- Don’t be totally forthcoming (even if you trust
your agent)
Finally, even though you have chosen an agent you hope you can trust, you may not want to be totally forthcoming with that agent. You should be honest, but you don’t have to tell him or her everything about your intentions, specifically about how much you are willing to spend.
Key takeaways:
- Work with a Realtor®; virtually all top agents are Realtors®.
- Do your homework. Get referrals from friends and check potential agents’ references. Interview these agents before settling on one.
- Avoid seller’s agents; if you are buying a home, work with a buyer’s agent who is not also representing the seller.
- By educating yourself on the real estate market in your area, and by fine-tuning your negotiating skills, you could end up saving yourself thousands (or even tens of thousands) of dollars when purchasing a home.
- Experience counts in the real estate field; avoid inexperienced agents.
- Make sure your agent will show you ALL properties in which you might be interested (not just the ones they’ll make the most money from).
- Be honest, but not totally forthcoming -- especially about how much you are willing to spend, even if you trust your agent.
Videos
Ask Randy Johnson
- How are realtors paid? Can I negotiate their fee?
- What's the difference is between a realtor, a broker and an agent?
- What's the difference between a seller's agent and a buyer's agent? Does it matter if my realtor is serving as both on a deal?
- What should I expect my agent to do for me? How can I make the best use of my agent?
- Does an agent have any (financial) incentive to do things that are not in my best interest?
- How much should I let my agent handle for me, and what should I take responsibility for myself?
Tools and Resources
National Association of Exclusive Buyer Agents Find & Compare local REALTORS® Free Home Value Estimate Sample of the Buyer's Broker Representation Agreement (used in CA) National Association of Realtors® Glossary Media Center: View all video Tips and Guides How to Use this Course Credit.com
Choose a good realtor
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