Selecting an agent
Selecting an agent to work with is one of the more important decision to make in the home buying process. The agent will be able to assist you with all aspects of the process. Agents may also suggest lenders, inspectors, settlement attorneys and other service personnel. It is typically the real estate sales professional who presents your offer to purchase a home to the seller. The offer specifies the type of financing you will use to purchase the home. You don't usually pay for the real estate sales professional's services. Instead, the seller of the house typically pays -- most often through a commission based on the selling price of the home.
How to Evaluate an Agent
Selecting an real estate agent is one of the more important decisions in the home buying process. In making your decision to work with an agent, there are certain questions you should ask when evaluating a potential agent.
- Is the agent a Realtor ? (A Realtor is member of the National Association of Realtors)
- Does the agent have an active real estate license in good standing?
- Does the agent belong to the Multiple Listing Service (MLS) ?
- Is real estate their full-time career?
- Which party is he or she representing--you or the seller? The discussion is supposed to occur early on, at "first serious contact" with you. The agent should discuss your state's particular definitions of agency, so you'll know where you stand.
- In exchange for your commitment, how will the agent help you accomplish your goals? Will (s)he show you homes that meet your requirements, and provide you with the list of the properties he or she is showing you?
What is a Buyer's Agent?
Simply put, a Buyer's agent represents the buyer as opposed to the listing agent who represents the seller. A buyer's agent is obligated by law a duty of confidentiality to the buyer.
Today's buyers also have more choices when it comes to choosing the agent that can best represent them in a real estate transaction. Until recent years, virtually all real estate agents involved in a given transaction worked for the seller. However, a growing number of today's home buyers are choosing to be represented by a "buyer's agent." In contrast to traditional agents, a buyer's agent represents the buyer in the real estate transaction.
Tip: When you go to an open house, keep in mind the agent holding the open house represents the seller's interests. He or she is duty-bound to tell the seller that important fact. The seller's agent doesn't have any duty of confidentiality toward you. Honest treatment might require that the agent warn you that "I must convey to the seller anything that would be useful so don't tell me anything you wouldn't tell the seller."
"If your real estate agent isn't a buyer broker, he works for the seller."
– US News
"Unlike the traditional agent who looks out for the seller, a buyer broker acts as your advocate, helping you find the home you want, then negotiating the lowest possible price."
– Money Magazine, May 1995 
"Exclusive agencies are best. They remove any conflict of interest, which is the main reason for considering a buyer broker in the first place." "Exclusive buyer's brokers work only with buyers and don't take listings. They're obligated to help you find the best deal and lowest price."
– Kiplinger's 
"Many people don't realize that, unless specifically stated otherwise, brokers are legal representatives of sellers. A buyer's broker, representing only the buyer, may be able to secure a better price and better terms."
– Good Housekeeping 
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