Buying a home, be it your first or 3rd one, is a big financial decision. The home buying process is not the simplest one and therefore, it's important to have a good real estate agent to help you through the process.
How do you go about identifying the right real estate agent for you when there are so many agents to choose from? Do you find one in the newspaper, or via recommendation from a friend or from Instagram?
Here are some top tips for choosing the best real estate agent for you.
Real estate agent
A real estate agent is a professional who helps clients buy, sell, or rent residential or commercial properties.
They usually have a license that is issued by the state and they specialize in negotiating deals between buyers and sellers, conducting market research to help clients determine the right price for a property, and guiding clients through the complex legal and financial aspects of a real estate transaction.
Realtor
A Realtor is a real estate agent who is a member of the National Association of Realtors (NAR), a professional trade organization. To be a Realtor, an agent must adhere to a strict code of ethics and standards of practice set forth by the NAR. The term "Realtor" is a registered trademark, and only NAR members are authorized to use it. Being a Realtor often carries with it a reputation for professionalism and expertise in the real estate industry. Realtors must pay an application fee and annual dues to NAR.
Broker
A real estate broker is a licensed real estate agent who oversees the buying and selling of properties. Brokers usually have a higher level of education than real estate agents and often hold a higher license allowing them to run their own brokerage firms or manage multiple agents.
In addition to working with clients to buy, sell, or rent properties, real estate brokers are responsible for managing the administrative and legal aspects of real estate transactions, including overseeing contracts and ensuring that all parties involved comply with state and federal regulations. Brokers can work independently, but all agents must work under brokers.
When thinking of working with a real estate agent, it is important that you understand what role they play in the entire process.
A real estate agent typically performs the following roles:
Marketing properties
Listing properties for sale or rent and promoting them to potential buyers or renters through advertising, open houses, and other means.
Finding properties
Helping clients find the right property to meet their needs and budget.
Negotiating deals
Acting as an intermediary between buyers and sellers to negotiate sales contracts and other details.
Handling paperwork
Preparing and processing legal documents such as purchase agreements, deeds, and rental contracts.
Providing advice
Offering professional guidance and advice to clients on the real estate market, home values, and other related matters.
Networking
Building and maintaining a network of industry contacts, including other real estate agents, mortgage lenders, and inspectors.
Staying current
Keeping up-to-date on market trends and changes in real estate law and regulations. These are just some of the common roles of a real estate agent, and the specific duties and responsibilities may vary depending on the individual agent and the real estate market in which they work.
Depending on whether you're buying or selling a house, you might need to hire either a buyer's agent or a listing agent.
Buyer's Agent
A buyer's agent is a real estate agent who works exclusively with homebuyers. Their role is to represent the interests of the buyer, provide guidance and advice throughout the home buying process, and help the buyer find the best property that meets their needs and budget.
A buyer's agent is a real estate agent who works exclusively with homebuyers. Their role is to represent the interests of the buyer, provide guidance and advice throughout the home buying process, and help the buyer find the best property that meets their needs and budget.
A buyer's agent will typically:
The services of a buyer's agent are usually paid for by the seller, so there is no additional cost to the buyer. Hiring a buyer's agent can be especially helpful for first-time homebuyers, who may be unfamiliar with the process and need additional guidance and support.
A listing agent is a real estate agent who represents the seller in the sale of a property. The listing agent's role is to help the seller market the property, find a buyer, and negotiate the sale.
A listing agent will typically:
The listing agent is usually paid a commission based on the sale price of the property, which is typically split between the listing agent and the buyer's agent. The listing agent has a fiduciary duty to act in the best interests of the seller, but is also required to adhere to state and federal real estate regulations and ethics standards.
Depending on whether you're buying or selling a property, get an agent who is exclusively working with you so they can help you get the best deal for your property.
1. Meet with several real estate agents before settling on one
Before you settle on one agent, set up meetings and interview with at least three agents so that you can get to interact with them one on one, ask questions that you may have, find out if your working styles match and also get to know more about their work experience and level of expertise.
It is important that you work with the right agent for you and someone who you're comfortable with, is professional, understands your needs and wants and has a good performance track record.
You can also ask to speak to a few of the agent's referees to find out how their overall experience was and their level of satisfaction throughout the process. Most agents are happy to provide you with these contacts.
2. Go for an agent who is an expert on the local real estate market
A good real estate agent should have updated real estate market insights and should be able to comfortably answer all questions that you have. They need to know things like pricing history, market trends, economic conditions and the relevant real estate laws and regulations.
They should be able to confidently answer all your questions about the local market. They should be able to provide you with information on how the different neighborhoods are, and if there are facilities like schools, parks and malls nearby. It is important that you work with an experienced agent who has enough knowledge on the neighborhood that you're interested in. Be sure to do your own research too so that you're able to compare notes and see.
Also, whether you're looking to buy, rent or sell property, look for a local real estate agent who has experience with the type of property that you have.
3. Check their credentials
All real estate agents are licensed professionals who have formal certifications that permit them to conduct real estate transactions. Different professionals have different areas of specialty and you'll find that some real estate agents are Seniors Real Estate Specialists (those who work with people over the age of 50) or Military Relocation Professional (those who work to relocate military personnel).
When choosing the right real estate agent for you, make sure that they are certified and have a good reputation. Also be sure to check out their online reviews before settling on them.
4. Choose someone who is a good communicator and is responsive
Selecting an agent who is responsive and has a similar communication style as you is vital as there won't be delays and breakdown in communication during the engagement period.
In this digital era, it is very possible for communication to be very efficient as there are many different ways to communicate such as call, text, email or even WhatsApp. So make sure that you and your agent settle on the best and preferred mode of communication.
Having a responsive agent will make the buying/ selling process easier as they are likely to quickly jump on beneficial opportunities.
5. Pick a real estate agent who’s tech-savvy
Technology has proved to be very useful in many different fields and real estate is not an exception. Many real estate agents still use traditional marketing tactics but have also transitioned into digital and social media marketing.
An agent's online presence can help them to quickly build an online portfolio, market their work and in turn get more clients. They can also easily accommodate other communication options like email, Zoom and Google meet, depending on their client's preference.
6. Get referrals from friends and family
If you have friends and family in your social network who've gone through the home buying process, ask them if they've worked with a good real estate agent whom they can recommend.
When a real estate agent is recommended by someone that you know and trust, it can give you more confidence and help with establishing trust between you and the agent.
In an ideal scenario, it would be great for example if you're a first time home buyer to work with an agent who works with clients purchasing their first homes. That is something that you should definitely put into consideration.
7. Select a real estate agent who can work around your schedule
Depending on your needs and preferred level of flexibility, you can decide on the type of agent that you want to work with. Different agents have different working hours and depending on whether they work part time or full time, this can give you a glimpse into their level of involvement within the real estate industry as well as their work experience.
If you would like someone who is able to work around your schedule, then a full time agent would be your best bet as they are more likely to be flexible and work around your schedule.
8. Trust your instincts
As much as qualifications and work experience are essential when choosing who to work with, it is important that you also go with someone that you feel comfortable with.
If for example you've met someone and they seem like the perfect agent but the vibe is off, don't go with them. Seek out other real estate agents because you need someone who you can reason out with in case of a negative experience down the road.
It is possible to find a great real estate agent with the kind of personality that you like. So keep looking until you find exactly what you want.
9. Find out how many transactions they handle annually
When looking for a real estate agent to work with, look for somebody who is experienced and has handled a significant number of real estate transactions but at the same time, someone that isn't too busy as they may not respond to your needs in good time.
If you can find a balance of both, do that but always vet carefully any potential real estate agent that you're looking to work with.
10. Be clear on the terms and conditions of your contract
Once you've identified the real estate agent that you'd like to work with, you and your agent will sign a contract with the agreed upon terms and conditions. Work with somebody who has your best interest at heart and double check the contract before signing it to make sure that the terms and conditions in the document are as agreed between you and the agent.
Typically, an exclusivity agreement with a real estate brokerage is for three months, and a seller’s listing agreement is a six month commitment. You however have the ability to negotiate this depending on the market conditions and individual needs.
When it comes to the commission, the standard agent fee usually falls between 5% to 6%. However, if you're a buyer, you don't get to pay anything out of pocket as the seller is the one who pays this fee once the home is sold.
In conclusion, choosing the right real estate agent is crucial in ensuring a successful real estate transaction. It's important to do your research, check credentials, ask for references and meet with potential agents in person to gauge their communication skills and knowledge of the local market.
Don't be afraid to ask questions and trust your gut instinct in making the final decision. With the right real estate agent by your side, you can feel confident in making informed decisions and achieving your real estate goals.
Bay Street Capital Holdings is a Black-owned, independent investment advisory, wealth management, and financial planning firm headquartered in Palo Alto, CA. They manage portfolios with the goal of maintaining and increasing total assets and income with a high priority on managing total risk and volatility. Although many advisors may focus on maximizing returns, they place a higher priority on managing total risk and volatility.
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