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Choosing a Real Estate Agent

It is a good idea to work with a buyer's agent as they serve a buyer's best interest and can offer valuable advice such as, whether a home is overpriced or how much in repairs the home may require. Even experienced real estate investors have buyer's agents looking to find properties for them.

One of the best ways to find a good agent is to ask friends, family and colleagues for agents they have enjoyed working with before. Attending many open houses in the areas of interest, even ones that are not the type of property you are looking for is a good way to meet agents. Be sure to pick up their business card and set up an in person interview with them. Use the Real Estate Agent Evaluation form in the FREE Tools section to help with your evaluation process.

A buyer should also search for homes with free time on websites such as Craigslist.org or Foreclosure.comand driving or walking around the area of interest. A buyer should inform their agent first on any properties they are interested in viewing as proper business etiquette towards the buyer's agent and because they can provide valuable information.

Do not mistake having more experience makes a better agent. Agents with less experience (1-3 years) can sometimes be even better as they might work harder to build a strong reputation and make sure you're completely satisfied and refer them to your friends, family and colleagues. There are also times when a buyer should find a new agent if the current one is unable to understand clearly what your wants and needs are (i.e. wasting time showing homes that you are not interested in), pushing you to purchase a property beyond your comfort level, irresponsible and consistently missing appointments or deadlines. Below are the pros and cons between working independently and working with an agent.

PROS
• Buyer's agent serves buyer's best interest and can offer valuable advice especially during a walk through of a property as they are more experienced in identifying benefits or potential problems of the home.
• Buyer saves time as buyer's agent will be searching for suitable homes.
• Will coordinate with both parties to schedule a showing or tour of the property.
• Buyer's agent has a better knowledge of the local real estate market compared to what may be available on the internet.
• Typically no cost to the buyer as the buyer's agent will receive a percentage, usually 50% of the commission (i.e. seller's agent receives 6% commission, but agreed to pay 3% to buyer's agent for producing a buyer).
• Can provide a comparable market analysis (CMA) report of comparable properties that have sold in the last 6 months (or fewer such as 3 months).

CONS
• A For Sale By Owner (FSBO) may choose not to pay buyer's agent commission, resulting in buyer having to pay commission, but usually rare as most sellers would be happy to just have an offer on their home.
• In a hot selling market, For Sale By Owner (FSBO) may choose to accept offer from another buyer without a buyer's agent to save on commission.

PROS
• Can find properties for sale not traditionally marketed through The Multiple Listing Service / MLS (i.e. craigslist.org or driving by and noticing for sale by owner signs).

CONS
• Seller's agent will not give buyer advice because they represent the seller.
• Internet research does not always give the best information when compared to a local buyer's agent who is knowledgeable of the market.
• Negotiations with the seller or seller's agent will most likely be less effective than a buyer's agent negotiating on buyer's behalf.
• Lack of knowledge with real estate contracts may cause buyer serious issues such as losing deposits paid if home purchase does not go through.
• Buyer may be overpaying for a home or missing out on better opportunities that a buyer's agent may know of.