| Working
with a Real Estate Agent When Buying A Home |
Once you find your agent, check them out by applying
some basic principles. Examples include:
-
Does the agent return phone calls
promptly?
-
Does the agent show an interest
in you and your needs? Do they work to find the
right home at the right price?
-
Does the agent provide you updated
computerized multiple listing (MLS) of homes? The
MLS is a listing of homes that are being sold by
several brokers in the area. The MLS will list those
homes that match your needs.
When you visit prospective homes, does the agent
spend time showing you the home and its feature? Is
the agent willing to discuss other options if you
are not interested?
-
Does the agent spend time explaining
the home buying process?
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Does the agent inform you that
they acting as a seller's agent?
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Does the agent provide maps of
the area and point out places of interest?
-
Does the agent investigate and
discuss any potential problems in the area?
What Can the Agent Do:
Here are some additional services an agent might
provide. If they don't volunteer the service, ask
for it:
Analyzing Your Financial Situation:
Before you look at your first house,
the agent should sit down with you and estimate what
you can afford. They will review the price of homes
based on your anticipated monthly payment and discuss
potential closing costs.
They Will Screen The Listing:
This is probably one of their greatest
services. They will screen the large listing of homes
and provide you the homes that fit your style and
price. They can also provide you with comparative
listings of homes that sold in the area.
They Will Show You the Neighborhood:
Good real estate agents will show
you around the neighborhood. They will point out the
shopping centers, the schools, parks, and other services
that make the neighborhood nice.
If You Are Moving to the Area, the Agent
will Act as Your Personal Guide:
They will meet you at your hotel and
personally drive you around the neighborhood. Take
advantage of their hospitality. There is no better
way to become familiar with the area than a personal
pickup service by an agent.
The Agent Will Arrange the Showing:
Just mention when you are available
to see a house and the agent will handle all the details.
Negotiating the Contract:
Agents present your offer to the seller
and communicate counteroffers. They are able to point
out differences so that you and the seller can negotiate
in good faith.
Mortgage Application Assistance:
Sometimes you will need assistance
with the mortgage application. They will discuss financing
options and lending arrangements, and they will keep
in contact with the lender to see that your paper
work is completed.
Help with the Inspection:
Before you close on any home, you
will want to have the home thoroughly inspected. The
agent can refer you to several recommended inspectors.
Closing the Deal:
They can assist with your closing
to make sure you understand the terms and procedures.
In some areas, the agent may accompany you to the
closing.
| Working
with a Real Estate Agent When SELLING A Home |
Once you find your agent, test them out by applying
some basic principles. Examples include:
-
Does the agent return phone calls
promptly?
-
Does the agent show an interest
in you and your needs? Do they work hard to estimate
the best selling price for your home?
-
Where does the agent work? Are there
settings pleasing? When you visit the agent at the
place of work, do the phone rings or are there other
agents on the phone working. Idle phones or agents
spells trouble.
-
Does the agent spend time explaining
the home selling process? Do they provide help sheets
on getting your home ready to sell?
-
View the agents past work, especially
the Sales Sheet, the information that describes
your home. This is going to be a big piece of your
promotion to prospective buyers. It must look good.
-
What other marketing materials does
the agent provide — sign, take-ones, etc. Again,
check their work for professionalism.
-
Finally, check the agent's references.
Talk to some other home sellers who have used their
services.
Ask those
relevant questions:
-
How long have they been in operation?
Ask to see a listing of comparable homes that they
have sold in the past.
-
Inquire about the homes they represent?
Are they comparable to yours?
-
How do they pay cooperating brokers
who represent the buyer? Generally the cooperative
split is down the middle. But if they pay a smaller
percentage, other cooperative agents may not work
with them.
-
What is their list-to-sale ratio?
List-to-sale ratio is the difference between the
list price of the home and the actual price. Compare
this ratio with other real estate firms.
You want to avoid firms whose ratio is high —
means that they generally price your home high (to
win your business) but eventually lower the price
to sell the home.
-
Inquiry about the time from market
to sale? This can vary by-home, by-neighborhood.
But they should give you a true opinion on how fast
they could possibly sell your home compared to other
sales on the market.
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