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How to Select a Real Estate Agent When Buying a Home
Here’s a statistic that never ceases to amaze me: Over 70% of home buyers “interview” only ONE real estate agent before selecting that agent to represent them in the largest capital purchase of their life!
And that interview may consist of 10 minutes of chit-chat at an open house! Seriously??
What if you’re going in for surgery or having to litigate a legal problem? Would you just go with the first licensed person that you meet? Most folks won’t … you’ll typically do plenty of research about that doctor, look for a specialist, ask friends and family, maybe even interview the doctor and lawyer first, just to make sure you trust them and feel confident in their ability to represent you well AND take care of you.
What I frequently see is that homebuyers don’t spend a lot of time doing even basic research on their choice in real estate agents. They meet someone and immediately book an appointment or just get in the car to go and see a home with whichever agent is in front of them first. What if they then fall in love with that home, and end up using the agent who has a nice smile or happens to be at today’s open house? Buying a home is one of the most expensive decisions you’ll ever make – does it make sense to entrust that negotiation to someone whose track record you know nothing about?
When I went in for surgery earlier this year, I literally interviewed 4 doctors, spent countless hours on the internet researching options and Googling more info on each doctor, their license status and reviewing board certifications. I’m happy to say that I chose the right doctor for me, because I knew everything about their professional history and the procedure before we committed to working together. We mapped out a plan and the options if something went awry and I fully understood the timeline for recovery and what the risks were. I needed and wanted to make sure that I was going ahead with the absolute best person to guide me and take care of me. (No, it was not a lobotomy as some of my friends hoped!)
Much like selecting a doctor, selecting an agent and preparing to buy a home is a process to take seriously. What do you want to buy, what financial decisions need to be made, who is going to represent you, negotiate, hold your hand, be honest and trustworthy and have your back? Will it be your cousin’s aunt’s sister’s boyfriend? Or will it be someone local who has worked with dozens of home buyers, has the reputation for being a superhero in negotiations for their clients, and the honesty to tell you to walk away from a house due the condition, location or price point?
Buying a home is a complex process. You will rely heavily on your agent to provide guidance and insight, and to negotiate with expertise – so you need to choose that person carefully.
You should treat selecting a real estate agent with the same perspective as if you’re the boss and hiring a new employee – you want to interview them and always check their references.
There are many lists of questions online to help you interview an agent, but here are a few that I think are important –
· How well do they communicate and explain? Buying a home is complex and lengthy – each step matters and you don’t want surprises along the way. It’s vital that the agent you choose be great at explaining all the details and offering solid advice along the way.
What kind of support system, team and admin assistance do they have in place? In our fast moving market it’s critical that an agent have a solid system of support in place – for contracts and compliance, for administration, for negotiations and much more. An agent working solo may not be able to offer the level of service that an agent with a team does. You may prefer to work with an agent who’s not part of a team, but be certain that they have adequate admin support and great client references.
How are their negotiation skills – do they work in a way you like? It’s important to find an agent who approaches negotiations in a manner that you are comfortable with. Some people looove to negotiate everything: the price, closing costs, repairs, appliances, furniture, cars, you name it. Others prefer to a more subtle approach. If you’re one way and your agent is another, it can be stressful. As long as you hire someone with talent, chops and integrity, you’ll still get a good deal no matter what your style is.
Are they well connected to professionals like lenders, escrow/title officers, inspectors, contractors, and so on? MANY professionals are involved when you buy a home, especially in our sophisticated Bay Area real estate market. You have the right to work with whomever you like, but a great agent with many industry connections can make life a lot easier during the transaction.
What sets you apart from other agents? They should be able to answer this question clearly and easily. Look for expertise and a full skill set. You want an agent with experience in the communities you’re targeting, a proven track record of happy clients, a great support system, and deep knowledge of any special requirements you might have in your home search.
You may be wondering how much a buyer’s agent costs. Actually, they cost the buyer nothing: All agent commissions are paid by the sellers from the profit of the sale, at the time that sale is complete … So buyer’s agents essentially work “for free,” until they hand you the keys to your new home.
As a home buyer, it’s imperative that you spend adequate time researching the real estate agent that you’re considering hiring, and that you interview them and speak with their references. Choosing a great agent for your home purchase and ensuring that they represent you well is one of the most important aspects of buying a house that will be both an integral part of your wealth-building, and a home for you and your family for potentially many years.
Until next time … Happy Thanksgiving, Claycord!….Nancy
Nancy Bennett, REALTOR, Keller Williams East Bay CalBRE# 01399870
Nancy Bennett has over 20 years of sales and marketing experience, with 11 of those years selling real estate in the East Bay. She’s an award-winning real estate agent in Contra Costa County, the #1 Realtor in The Crossings neighborhood, and she heads up The Bennett Team – the leading real estate team at Keller Williams East Bay. She’s won the Five-Star Professional Award in Real Estate for 2012 and 2013.
Nancy is also a member of the National Association of Realtors, the California Association of Realtors, the Contra Costa Association of Realtors, the Fortune 400 Masterminds, and Contra Costa Realtors in Motion. She serves on the Agent Leadership Council, as well as being a faculty member and mentor to new agents at her office.
Nancy is a licensed foster parent and a volunteer with local organizations such as Meals on Wheels and Youth Homes in Walnut Creek. For more information, please visit www.BennettBetter.com or reach Nancy directly at: Nancy@BennettBetter.com.