You are about to embark on a purchase that is usually the largest purchase most people make in a lifetime. Your new home. Who you choose to represent you DOES matter a great deal. Choosing the right buyer’s agent will not only impact the current purchase, the right agent will be a lifetime advisor of homeownership. Very few agents really take that relationship to the level it merits. Here is how you can ensure that the agents who represents you, will be your best choice for the job.
Hiring a Buyer's Real Estate Agent
Buying a home in Southern California in today’s market is a tough undertaking right now. Even if you have just recently started your home search, no doubt you quickly became aware of the current market conditions. Choosing a trustworthy and highly experienced REALTOR® to help you with this complex process is probably one of the most important decisions you will make when buying your next home.
I am going to walk you through the fundamentals of what you need to do so you have the right representation when taking that step of buying a home.
What exactly is a buyer’s agent and why do you need one?
From the legal sense, in California, it is a requirement that a buyer be represented when they purchase a home that is listed on the MLS and the seller is being represented by a Real Estate agent. It is statutory that even if the same agent who represents the seller, writes the offer for the buyer, that agent has a fiduciary duty to the buyer, as well as the seller. In this market, many buyers opt to go directly to the listing agent, or the seller’s agent, to write the offer. It is important to understand the agency relationship in these cases, if for nothing else.. to at least know what you are signing up for. Because ALL buyers WILL sign an agency disclosure form.. but hardly does anyone read it. Perhaps to their peril.
A buyer’s agent then is a licensed Real Estate agent who exclusively represents the buyer and their interest. They owe a fiduciary duty only to the buyer, not the seller. Using a buyer’s agent, you can then be assured that they will ONLY act in your best interest, not the interest of both buyer AND seller as is the case when you work with the listing agent directly.
A buyer’s agent is your exclusive advocate in the transaction. Why is this important right now? Well, at a time when homes are selling WELL above asking price, it may behoove you to have someone on your side who wants YOU to get the best deal possible. Keep in mind that when you work with the seller’s agent, that agent is contractually obligated to get “the highest and best offer” for the seller.
How to find a qualified buyer’s agent
There is no doubt that within a stone’s throw you will find a half a dozen agents. In boom times in Real Estate, everybody jumps in to get their license so they can “make the big bucks”. Sadly, there is a very low barrier of entry into the business so literally, anyone can be an agent in a matter of weeks. Your dilemma is, do you want to put the largest transaction of your life in the hands of someone who three weeks ago was flipping cars on Craig’s List?.. you decide. If you want to be more discerning though.. here is how you can go about it.
Gather your personal list of contacts, your own as well as referrals from those you trust around you.
Practically guaranteed that you will come up with an arm’s length list of potential agents. Here are some of the immediate considerations if in that list you have you find friends and family. When you work with a Real Estate agent, you will share many details of your private life with them. Finances, personal preferences that you may or may not be comfortable sharing with everyone. There is however, one or two people who are close enough and far enough that you will consider them to help you with your home purchase. Now what?
First thing is: Google them. One quick way to find out about their professional qualifications is to find out what is out there. Look for things like online reviews, their social media content, website, and other elements that are needed to pass the test of being a qualified, experienced and knowledgeable agent.
Read their online reviews and any content, videos, etc. you can find. If you are looking to go outside of your personal network, you want to get an idea of who they are before you make that call to them. If you find tons of negative reviews, of course.. run! If on the other hand, there seem to be plenty of consensuses and legitimate reviews on third party sites like Realtor.com , Zillow, Yelp, etc. That agent would be very much worth considering.
Interview At Least Three Agents
It is important to have a buyer/agent consultation at this step. Most buyers think that there is little or no value in this but experience proves that an initial agent interview will save you and the agent headaches along the way. This is a very important transaction, the relationship of the parties should be more than just transactional. A properly prepared Real Estate agent will have a presentation ready where they will lay out their plan to help you through all stages of the purchase, and be a resource for you beyond the sale.
Consider Signing a Buyer’s Broker Agreement.
Real Estate agents work on commission. Not having an agreement of exclusivity means to them that they can spend months with you in this market with no expectation that you will buy a house from them. That is not a comforting position for anyone. If you sign a buyer’s broker agreement, at least shows that you are committed to the professional relationship and that if you do buy a house, you will be using them to represent you.
This is merely a primer on what you need to consider when choosing a Real Estate agent. As you talk to agents, you will find that you have more questions you need answers to. Make sure you are direct in your communication so that you get what you need so you can move forward.