Beyond simply finding homes for you to look at, a real estate agent can help with market research, advise on pricing strategies, and will help you avoid costly mistakes through what can be a challenging home-buying process.
A good agent will also have a deep network of real estate professionals, inclusing inspectors and insurance agents, to help you with all aspects of your home search. Your agent can sometimes even let you look at homes that aren't yet on the market through their network of other agents.
But it's iimportant to find one who listens to your wants and needs, and who has experience in the local area. Here are some things to look for when choosing your real estate agent.
Should you choose an agent, broker, or realtor?
While sometimes you hear real estate agents referred to as brokers or realtors, there is a subtle difference between all three titles.
Agents
Real estate agents have undergone extensive state-mandated training and have passed the required licensing exam. Agents help clients sell, buy, and lease property and are often affiliated with a specific brokerage firm.
Brokers
Like an agent, real estate brokers are licensed to perform the same duties. However, brokers have undergone additional training which allows them to work independently from any brokerage firm. In fact, real estate brokers often employ their own agents to work for them.
Realtors
Lastly, individuals designated as realtors are either real estate agents or brokers, but with the bonus of being professionally affiliated with the National Association of Realtors (NAR). They can perform the same duties as an agent, but must also complete NAR training to maintain their membership.
Understanding these differences will help you select the right agent to represent you through your next purchase or sales transaction.
Tips for finding the perfect real estate agent
More than 168,000 active real estate agents are currently doing business in the United States. Depending on the size of your target area, you'll hopefully have plenty of candidates to choose from.
1. Seek referrals from friends and family members
Even if you're new to buying or selling a home, chances are you know someone who has gone through the home-buying process. Ask close friends and family members for referrals. According to the NAR, 65% of buyers and sellers found their agent through a loved one.
2. Contact Multiple Agents
Before committing, do your research and interview several candidates. Some agents have more experience than others, and you'll want to make sure they're familiar with the area where you want to buy. Some might prefer to communicate with clients by email or exclusively texting. Others specialize in certain types of real estate or have undergone additional professional training. Make sure their style and background matches your expectations and comfort level.
3. Don’t be afraid to ask questions
Buying or selling a home can get complicated, so you want an agent who can answer all your questions and concerns. You should feel comfortable and confident that they're the right person to represent you.
Asking questions will familiarize you with an agent’s track record. Don’t be afraid to ask about their previous sales experience and success. You want an agent who will be transparent about their workload and successes to help build trust and set the foundation for a positive working relationship.
4. Research and check references
Before you agree to work with an agent, always cross-check their background and references through independent research. Most agents have a presence on social media or have received reviews from past clients. Dig into the data to make sure you're comfortable with who you are considering working with.
5. Understand Your Contract
After vetting potential real estate agents and choosing a candidate to work with, it's important to read through the agency agreement before moving forward. Real estate agents are required to disclose how they will be compensated in exchange for representing you. Most contracts are also only good for a specific period of time. Understanding the fine print will prevent surprises down the road.
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