Step 1: Choose a good realtor

Correct! If Deirdre gives the agent a higher price range than what she can really afford, the agent will be less willing to show her homes within her actual price range, and will be much less willing to negotiate down to her actual price range, because the agent will believe that she can actually afford 220k. In fact, it’s not even a good idea to tell an agent the high end of what you can afford. It would be better if Deirdre were to tell the agent that her price range was around 180k.

Incorrect. If Deirdre gives the agent a higher price range than what she can really afford, the agent will be less willing to show her homes within her actual price range, and will be much less willing to negotiate down to her actual price range, because the agent will believe that she can actually afford 220k. In fact, it’s not even a good idea to tell an agent the high end of what you can afford. It would be better if Deirdre were to tell the agent that her price range was around 180k.

Correct! A referral is a great starting point, but don’t stop there. Referrals can be flawed--a friend might refer you to a family member, regardless of their experience; they may refer you to someone who was great 15 years ago, but hasn’t had much experience since; or to someone they’ve only heard is great, but whom they have no personal experience with themselves. You are leaving a lot to chance if you don't check out the past behavior of real estate agents by getting references from their three most recent clients and calling them to verify that they are being truthful about their accomplishments.

Incorrect. A referral is a great starting point, but don’t stop there. Referrals can be flawed--a friend might refer you to a family member, regardless of their experience; they may refer you to someone who was great 15 years ago, but hasn’t had much experience since; or to someone they’ve only heard is great, but whom they have no personal experience with themselves. You are leaving a lot to chance if you don't check out the past behavior of real estate agents by getting references from their three most recent clients and calling them to verify that they are being truthful about their accomplishments.

Correct! An agent working simultaneously for the buyer and the seller has the best interests of both parties in mind. Agents working exclusively working for the buyer, on the other hand, have only the buyer’s best interests in mind. If an agent is representing both you and the seller, they will be trying to make money for you and for the seller when it is time to negotiate. Your goal should be to find someone who is in your corner alone and not representing anyone else’s best interests as well.

Incorrect. An agent working simultaneously for the buyer and the seller has the best interests of both parties in mind. Agents working exclusively working for the buyer, on the other hand, have only the buyer’s best interests in mind. If an agent is representing both you and the seller, they will be trying to make money for you and for the seller when it is time to negotiate. Your goal should be to find someone who is in your corner alone and not representing anyone else’s best interests as well.

Correct! Don’t be afraid to ask an agent hard-hitting questions about his or her services. A good agent will understand your concerns and answer your questions patiently and thoroughly.

Incorrect. Don’t be afraid to ask an agent hard-hitting questions about his or her services. A good agent will understand your concerns and answer your questions patiently and thoroughly.