Rather than taking on the home-buying process alone, you can work with a buyer’s real estate agent. A knowledgeable agent specializing in the buying side of real estate transactions can help you find a home within your price range that best fits your current wants and needs. But before you start calling your friends and family for referrals, check out RealtyHop’s top ten real estate tips for buyers who want to work with an agent.
Why Use a Real Estate Agent?
Real estate agents fulfill the role of a professional partner to give you credibility and lend advice as you navigate the home-buying process. From helping you write an offer letter for a house to recommending when to escalate an offer in a bidding war, real estate agents give you the support needed during the buying process. While real estate agents receive a broker’s fee, typically equal to 3% of the sales price, buyers can negotiate this amount under certain market conditions.
What is a Buyer’s Agent?
You may notice some real estate agents labeled as a buyer’s agent or a listing agent. A buyer’s real estate agent works with house hunters looking to purchase a home. You may hear a buyer’s agent described as a selling agent because they help to sell a home. A listing agent represents the home seller and negotiates on their behalf.
What Does a Real Estate Agent Do?
With so many real estate listings available online, potential buyers can quickly become overwhelmed by the sheer amount of information. A knowledgeable real estate agent can prevent data overload by quickly narrowing down options that may work best for you. Not only do buyer’s agents review new property listings every single day, but they also know the ins and outs of real estate, from comparable analysis to sales transaction history, and contract negotiation. Rather than taking on the challenge of negotiating an offer directly with a seller, a buyer’s agent can step into this role and use their professional credentials to act on your behalf.
Of course, your real estate agent would not produce good results without the proper cooperation and communication from their clients. Nor would a real estate agent go the extra mile to find a good deal if they do not enjoy working with you. What are the rules for working with real estate agents? How do you help your real estate agent find your dream house in today’s competitive market? Look at our list of key tips for buyers working with an agent.
1. Decide if You Prefer a Real Estate Team or Individual Agent
Real estate agents typically work for a brokerage firm that provides the necessary resources and support to help buy and sell homes. Brokerages may divide personnel into real estate teams who work together. Some agents may work as part of a large team, meaning clients may have less personal access to one individual. These larger teams may designate specific agents to focus on certain specialized tasks to increase the buying process’s efficiency.
However, this large-team approach might not work for everyone. If you prefer more personalized service, where you deal with only one agent who knows you best, look at smaller firms, or find an agent who works with a smaller team.
2. Work with Agents who Know the Area
If you want to get the most out of your relationship with your agent, choose someone familiar with the neighborhoods where you want to buy. An out-of-town agent may not have the detailed knowledge needed to steer you toward the best deals in up-and-coming locations, where you’ll get more bang for your buck. For example, the New York City real estate market differs from Cleveland due to cost of living, housing inventory, and many other factors.
Learn more: Find Top Agents in Your Area
3. Sign a Buyer’s Broker Agreement
A signed buyer’s broker agreement establishes a trustworthy relationship between you, the agent, and their broker. Of course, you should only sign the agreement when you’re prepared to move forward with one particular agent. Gain comfort with the agent and discuss your goals for your home search. Buyers do not need to sign a binding broker’s agreement to view one unit or attend an open house. Once you’ve decided to move forward with an agent of your choosing, carefully read the paperwork before you sign and ask any clarifying questions.
4. Avoid Dual Agency, if Possible
Dual agency occurs when one real estate agent represents both the buyer and the seller of a home. In these situations, the possibility of favoritism toward one party over the other may exist. If you choose to participate in a dual agency process, first check to ensure your state allows the practice. Some state governments do not allow dual agency.
5. Come Up With Your Wishlist
Your buyer’s agent will work to find you the home you desire—but first, you need to tell them what you want! Putting together a checklist certainly accelerates the home search process as you can provide guidelines, including some definite “yes” characteristics (like a finished basement) and what you consider hard “no”s (possibly an outdated kitchen). The checklist should include as much detail as you can provide about items like square footage needs, architectural preferences, ideal locations, kitchen features, and the closeness of neighbors.
Buyers should also understand that they may not find a home with everything on their list. Prioritize what is most important in your new home by separating items into wants versus needs. While it may be nice to have an inground pool, you may value a shorter commute more.
6. Get Pre-Approved by a Lender
Serious buyers can’t afford to waste time looking at homes beyond their financial reach. A mortgage pre-approval allows you to make an offer when you find what you want. You can get pre-approved by working with a mortgage lender to review your finances. If you qualify for a loan, the lender will then issue a letter stating the amount of a home you can likely afford. Remember, in a seller’s market with a limited supply of homes, a preapproval allows buyers to bid immediately. This could prevent the loss of a home to another potential bidder who already has financing sorted out.
7. Always Use Your Agent to Communicate with Other Agents
When you find an intriguing listing online, resist the temptation to contact the listing agent alone. Remember, a listing agent represents the seller, not you, and they may not have your best interests at heart. To help your buyer’s agent help you, let them know which properties you want to tour and ask them to contact the listing agents.
8. Attend Open Houses with Your Buyer’s Agent
If you drive by an open house on a Sunday afternoon, always contact your real estate agent before popping in for a tour. During open houses, another agent may approach you about representation. Having your agent by your side could save you a lot of trouble and also ensure that someone will act on your behalf should you decide to move forward. Even if you miss the open house, your agent can work with the listing agent to find the time for you to view the property.
9. Be Responsive
Buyers working with real estate agents should plan to stay on top of their emails, texts, and calls. As a buyer, you must pick up your phone and respond when your agent calls with a potential home that may interest you. In a fast-paced market, a delay in returning a phone call or scheduling a showing could make the difference between nabbing a fabulous deal versus missing out on a piece of prime real estate.
10. Be Realistic
Although a buyer’s agent can do a lot for you, they work within the confines of the local real estate market. A reputable agent will share their honest opinion about how much you may need to offer as a competitive bid. Sometimes, your agent could deliver news you may not want to hear. Remember that a good agent always has your back, and they will happily celebrate with you when you finally reach the settlement table and receive the keys to your new home.
