How to choose the Realtor® right for you.
Why you should hire areal estate agent when buying a home?
In the modern world, where you can search for properties online and go directly to a listing agent at an open house, many first-time home buyers are left wondering why they should hire a buyer’s agent. A buyer’s agent can play an instrumental role in helping you find the right home that fits your needs. Idenitiy neighborhoods and area that you may not have considered. Connect you with trusted professionals for inspection.
And most importantly your agent will negotiate the terms of your purchase contract to protect your interests. This includes the price, timeline, contingencies, deposit, repairs, and more.
So, while the idea of hiring a buyer’s agent at 2-3% may seem daunting, the reality is that NOT hiring a buyer’s agent could cost you a lot more.
How do real estate agents get paid?
It’s important to know that the way that real estate agents get paid JUST changed. Before July 2024, sellers and their agents agree on a commission fee, typically 5 to 6 percent of the home value, with the amount paid out of the seller’s proceeds and split between the seller’s agent and the buyer’s agent. Most buyers have not had input into the fee and were not aware that it was negotiable.
This often made home buyers feel like there “wasn’t a cost” to having an agent, but in reality the cost was applied to the seller. Would the buyer have gotten a better deal if they did not have someone represent them? Would the seller have lowered their expectation of the price they wan’t on their home to offset the agents compensation? Home buyers don’t know, but we will soon!
How to hire a GOOD real estate agent vs ANY real estate agent
It’s important to know that the way that real estate agents get paid JUST changed. Before July 2024, sellers and their agents agree on a commission fee, typically 5 to 6 percent of the home value, with the amount paid out of the seller’s proceeds and split between the seller’s agent and the buyer’s agent. Most buyers have not had input into the fee and were not aware that it was negotiable.
This often made home buyers feel like there “wasn’t a cost” to having an agent, but in reality the cost was applied to the seller. Would the buyer have gotten a better deal if they did not have someone represent them? Would the seller have lowered their expectation of the price they wan’t on their home to offset the agents compensation? Home buyers don’t know, but we will soon!
Starting in July 2024, real estate brokers cannot be listed on multiple listing services and that buyer-side real estate agents have to “enter into written agreements with their buyers.” There has been much speculation about how this change will work in practice.
Hiring a buyer's agent to help you find a home
Not all Realtors are created equal. So if you are expected to sign a Buyer’s Commission Agreement of 2-4% how do you know that you will be get your monies worth? The answer, ask the right questions before you sign!
The problem is that most people don’t know what questions they should ask. So lets talk about it! What questions should you ask when hiring a real estate agent to represent you on the purchase of their home?
What to ask when interviewing your potential agent:
Determine the real estate agent’s activity level
There are a number of reasons you want to know how many houses your agent sells in 1 year. First, in the world of real estate being licensed a long time does not mean that you have sold a lot of houses. Meaning, 20% of the agents sell 80% of the home in the country (roughly). Some agents have been selling 2-3 houses a year for a decade. While other agents may be licensed for a much shorter time, in that time they have been selling 2-3 homes a MONTH.
By evaluating their current home sales volume you can gauge their knowledge of the current real estate market.
Asses the Realtor’s experience with your specific loan product
Not all loan products are the same. Some agents work a lot with specific loan programs like the 0% USDA Home Loan or VA Home Loan. While others have only ever worked with conventional financing. Ask about your realtor’s experience working with your specific loan product. In fact, I would ask how many of that types of loans they have worked with in the last year. It is important to note that an agent’s knowledge of your loan type can prevent potential hurdles during closing and make for a smoother home-buying experience.
Find out about homebuyer benefits
Ask about any homebuyer benefits offered by your potential realtor. For example, will they provide access to off-market properties or do they have personal relationships with new construction developments? These types of connections can give you an edge when searching for your ideal home.
What services does the agent offer that will ensure a stress-free home buying experience
It is important to find out about what services the realtor offers to facilitate a smooth homebuying journey. Do they provide virtual house hunting? Can they offer you a remote closing? Do they offer electronic signatures? All of these services can help make the home-buying experience more enjoyable!
Interviewing a real estate agent this harder than it looks
In conclusion, hopefully, this helps you realize that there is more to interviewing real estate agents than you originally thought. If you don’t have industry knowledge or aren’t comfortable assessing the expertise or professionalism of your potential agent, we got you covered!
Just submit our request to connect from HERE and our team will connect you with our filled vetted and verified expert in your area. Knowing what questions to ask is essential to hire a knowledgeable agent who will provide great service. Hope this helps – Happy house hunting!
