Purchasing a home...things to consider

When purchasing a home, there are many things to consider. Included in this list is one of the most important, your real estate broker. Some are good, some are not. Here are some tips on working with real estate agents. 

Although many homeowners are trying to sell their own homes, most existing homes are marketed through real estate agents and finding an existing home may be easier when using an agent. Agents can also be helpful when looking for property to build a home on.

Agents often know of houses that will be on the market before the house is even advertised and working with a good agent may help you find a home quicker and help you avoid missing opportunities. The do this by........ 



Some agents also spend time previewing homes and they can save you time by only showing you homes that may interest you. 

What makes his or her effort pay off for them? Real estate agents work for the seller and the agent will realize a commission of around 6%. Usually, the agent representing the seller gets half the commission and the agent helping the buyer gets half of the commission. So, for a 150,000 home, the agent is working towards making $4,500. So, yes...the effort definatly can pay off. 

On the other hand, if you are selling a home, the agent works for you. An agent's salary is based on the commission. Agents are obligated to get the highest price for the seller. 

For example if you tell an agent the most you are willing to pay for a given home then the agent might tell the seller how high you are willing to go on the price. It is more difficult to negotiate with a seller who knows the maximum amount you are willing to spend and you may end up 
paying more for the home then you would have if you had kept your maximum price confidential.

When shopping for a home, some agents may request you sign an exclusive agreement stating they will be the only agent you will use to find a home. You're not required to sign an exclusive agreement and many agents will help you without an exclusive agreement. However, if you decide to sign this agreement, do it for short periods of time (such as 30 days). Then if you are dissatisfied with an agent's performance you are not locked in to working with them for 
long periods of time. 

If you work with any kind of agent, work with one who is a full time agent. Some agents are part time agents or have other jobs. Those agents are less likely to promptly inform you of new offerings. In some markets, good houses may sell within a few days. A part time agent may not 
inform you fast enough of new offerings and can reduce the chance of you finding a home. 

Find out how long the agent has lived and worked in an area. Agents who have lived in an area longer may know more about the community and the local real estate market. Look at the experience of the agent -- how long have they been an agent? How many homes do they sell a year? What types of homes and what locations do they specialize in?

Ask the agent how many people they are currently working with. If the agent is working with too many buyers they may not have enough time to assist you. Ask what hours the agent is available to show you homes. If their schedule doesn't fit your schedule then it may not be a 
good fit. 

If you are moving to another city then work with an agent who is located in the area you want to move (rather than relying on agents where you currently live). Local agents are more familiar with the property and services in their area. Agents often specialize in a certain segment of the market. People who specialize in certain areas tend to become experts in those areas. 

When searching for a real estate agent for buying a home, a mortgage loan officer can sometimes tell you who the better agents are. A real estate attorney or title company can also help recommend good agents. Also talk with people who recently bought a home. Drive around 
areas that have the types of home you like. Look at the for sale signs to determine which agents tend to specialize in the types of homes you like.

When looking for an agent you may want to see what education designations they have. Some agents take further education and receive additional designations. Usually the agent's business card will list any educational designations they have. An agent who has more education designations may be more knowledgeable. In most states, an agent who is called a "broker" has to go through additional licensing and may have more responsibilities. Brokers tend to be more experienced. 

If you are planning to buy an existing home you may want to show an agent examples of house plans you like. By giving an agent examples of what types of homes you like it will save you time when working with an agent. Your house plan examples can help the agent show you houses 
that are more similar to what you like.