First Time Home Buying 101: Agent or Not?

Yes, Yes, Yes! I think I've already answered this question with all my references to your real estate agent! Granted, a home can be purchased without the aid of a real estate agent; however, they do earn their money. Their job is to find right home for you.

REASONS FOR A REAL ESTATE AGENT:

1. You are a first-time buyer.
2. You are purchasing a home in an unfamiliar location.
3. Laws vary from state-to-state. They know the laws, however, they are not lawyers and cannot give legal advise.
4. The agent is familiar with the county, city, neighborhood.
5. The agent has access to all new listings on MLS.
6. MLS (Multiple Listing Service) also gives the agent access to property history, includes when purchased, purchase price, tax information. It also includes information as to days on the market and prior listings.
7. A real estate agent Is an experienced negotiator, familiar with the market, finance issues.
8. Can refer you to others in the industry to help with your purchase; i.e., mortgage brokers, appraisers, home inspectors, even movers.
9. They have seen hundreds, perhaps thousands of homes and know the what to look for--the good and the bad....the issues that could save you money and the ones that could potentially cost you a fortune.
10. All the foreclosures, short sales, auctions, etc., in this market present totally different issues than the market did a few years ago, when their were actually "bidding wars" for homes. The real estate agent will know how to guide you through these specific situations.

REAL ESTATE AGENTS AND AGENCIES: (General & simplistic description. Laws can vary.)

A real estate broker is a person in the office holding the license to own/manage a real estate office. Ultimately, the broker is responsible for every transaction and supervision of the real estate sales associate. The industry is highly regulated by the State. Brokers may also list and sell real estate. All Realtors, agents, sales associates pass an exam and are licensed by the State. Many agents don't necessarily want to be "management" or supervise other agents. They like selling. The point being, don't feel that you have to have a broker working for you.

Real estate agents work on a commission. When an agent (agency) is hired to sell a property, a contract is signed stating what the commission on the sale will be. Generally, it is 6% of the sales price. (This can vary, but let's keep it basic!). So how does that apply to you?

• Example: Agent X has a home listed for sale. Your agent, Z, takes you to see that home and you decide to purchase it. When "title" transfers to you, the 6% is split between the two agents. The agents then must pay an amount of their percentage to the brokerage where they work). Now, had you seen the home listed with agent X's name, contacted X and purchased it, X would receive the entire 6%. X would be representing both the seller and the buyer.

I think it wise to find your own agent. The listing agent (X) has a contract with the seller to sell his property at the highest price. I feel it's is better to have YOUR agent negotiating the best deal for you. The result may be the same, but at least you know your interests were given 100% attention. (The laws on this may vary in different states, but I don't know of anywhere it is not allowed.) I have heard of agency's that will ask another agent in the office to assist the buyer simply so there are no appearance of conflicts.

HOW TO FIND A REAL ESTATE AGENT:

1. Locally you could ask a friend or neighbor.
2. Go back to the Internet listings. Each listing has the agency, usually the agent's name and also a photo.
3. Go to a agency web site in the area you are moving, very often the site will have "profiles". The profiles have photos and "bios". ." If someone impresses you - give them a call.
4. Go to a real estate office, meet the agents.
5. Go to "Open Houses". You can get a first-hand impression of the agent at work. (Because you are moving across the country, it may be something you would do at your current location to receive a basic impression of what you are looking for in the person you hire to represent you). Every time you enter a house, you will learn more, not only about what skills you want to see from your agent, but also about what to look for in selecting a home.

WHAT SHOULD I LOOK FOR IN AN AGENT?

1. Whether meeting on the phone or in person, did you have a good impression of the person?
2. Did you feel that this is a person that will diligently spend the time it takes to find you the right home?
3. Did you think your personalities "clicked"?
4. Does the agent seem willing to answer all your questions?
5. Do you feel this person is "hearing" you?
6. When you are shopping for homes, do feel you are feel you are being pushed to buy?
7. Do you feel you are only seeing or encouraged to buy property at the top or above your "price point"?
8. Does the person seem knowledgeable in answering your questions or giving explanations?
9. Do they seem to have done their homework?
10. When shopping for homes, are they talking about the area, the school district, etc.,?
11. When you in a home, does the agent point out the defects as well as assets?
12. Do you feel they are knowledgeable about repairs or renovation costs?

The real estate agent, of course, wants to sell the property. They want your business when you decide to sell that property. You are a great referral for business and will talk to friends and neighbors. The best advertising is a client that thinks "you walk on water".

Everyone has different criteria as to why they buy a specific property. Remember, the agent may have only seen this property from photos prior to your visit together. Is your agent noticing things like the age of the furnace, foundation cracks, etc.? I want to know the "the why or why not" from their "experienced eye." I don't want a "money pit" and would appreciate an agent that actually says "I don't think this is a good choice for you, let's find something better."

After working with your agent, you realize really aren't impressed with this person. Whatever the reason, if you are not comfortable and don't feel that it is simply resolved, find another agent! You are not under a contract with them. Having said that, if you have found the right agent, who is working diligently for you, it is simply common courtesy to have them representing you when you purchase.

• Example: You are driving down the street and see an "open house". Agent X has the listing and is showing the property. You love it and think you want to buy it. Call your agent and tell them, they will probably drive right over. Or tell Agent X , "I'll have my agent call you." At least give them a really fair chance.