Working With Your Real Estate Agent Effectively
Finding your ideal home can happen significantly faster when you make the best use of a real estate agent. Learning effective ways to work with your agent insures that everyone benefits from the relationship.
Buyer's Agent
Reviewing the basic principles of your relationship with your agent is the starting point. When buying real estate, you have several choices about how to work with the agent. You may want them to represent only you (as a buyer's agent). If you have a “buyer’s agent” agreement, the agent cannot share personal information without your permission. Sometimes a buyer’s agent is compensated by the buyer, sometimes by both the buyer and seller.
Dual Agent
A second choice is for an agent to represent both you and the seller at the same time (as a dual agent). Be sure you are clear about the relationship. The dual agent must be fair to both parties and treat the buyer and seller equally. It is also possible for the agency to be dual, and designate a different agent for the buyer and the seller, to help create more distance and confidentiality.
Seller's Agent
Finally, agents may be the seller’s agent. In this case they must tell you (in some states, in writing) if they are sellers' agents before you say anything that can help the seller. Until you are sure that an agent is not a seller's agent, you should avoid saying anything you do not want a seller to know.
Contract
You may or may not have a written contract when you begin working with a real estate agent. At the time you are ready to close on a property, however, a written contract will most certainly be drawn up. Be sure to read any agreement that you sign, so that you understand all the compensation and disclosure issues associated with it.
Must Haves vs. Nice to Haves
Once you are clear about your working relationship with your agent, the next step is to provide him or her with as much information about your situation as possible. This includes defining the “must-haves” for your home, as well as “nice-to-haves.” This allows the agent to be more focused when contacting you about prospective properties. Do your homework in advance. For example, if a large yard is a must-have, but walking to shops is nice-to-have, you need to explain that. It makes the difference in finding something that works for you and your family.
Fixer's
Another piece of information helpful to the agent is what fix-up work you are willing to do. You might create a scale from none to light to heavy, and also define what each term means. In that way the real estate agent can pre-screen properties which entail more work than you are willing to invest.
Feedback
The best way to work with your agent is to constantly give feedback when viewing a homes that don’t match your needs. If you can accurately name the drawbacks of a particularly property, you assist the agent in fine tuning the search process, saving both of you needless wasted time. Conversely, when you find a property that comes very close to your needs, it is important to take the time to talk to the agent honestly.
Be Realistic
Use the relationship to explore whether some of your perceived needs might be more honestly moved to the nice-to-have list. Having an outside person to discuss the property with can help you minimize an endless search for the needle-in-the-haystack, that one property which is 110% what you wanted, rather than the property that you can afford and will love just as well.
Ask Questions
As you get closer to selecting the home you want, use the real estate professional to get some important answers. If you have specific contract and financing needs, invite the professional to make their recommendations. This is the time to seriously talk finances as well. What are the hidden costs you have forgotten to include - association dues, maintenance, or insurance? Create an accurate budget so that as you negotiate on the price, you know what you can and can’t afford for this particular property. Remember all home have different incidental costs, so using the bottom line price on the property is not a sufficient criteria. One property may cost more than another, yet it may reduce incidentals significantly.
As you close on the property you select, you can have the comfort of knowing that it is possible for everyone to come out feeling satisfied: the seller, the agent, and you, the new owner of your dream home.