After the determination was made as to what your comfort zone is, and once you have a pre-approval letter in-hand, it is time to hire an agent. Smart consumers interview potential real estate agents before deciding on whom to hire. Just as you are sizing up the potential for a good fit, rest assured that the real estate agent will likely be interviewing you as well. Be wary of agents that don’t ask you questions and probe for your motivation. You wouldn’t work with just any agent off the street, and good agents are just as selective about their clients as you should be about your agent.
Knowing the agent’s average ratio speaks volumes. Excluding sizzling seller’s markets, a good buyer’s agent should be able to negotiate a sales price that is lower than the list price. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, good listing agents should have ratios closer to 100%, while buyer’s agent ratios should fall below 99%, preferably as low as possible! Also ask for references, and how the agent will be searching for the properties you are interested in. They should know their field by heart, be exemplary negotiators, and have first-hand knowledge of the entire buying process. Newly licensed agents may not be a bad idea if they have a good mentor at hand, as they are usually able to invest a lot more time and detail into getting to know exactly what you are looking for. Ask for references from both the agent and the agency, ask vital questions, and find out what separates any particular agent from the rest of their competition!
The focus should be on finding an agent who will represent your best interests in the search. This is not as simple as it sounds. 85 percent of sellers list their properties through an agent, but those agents are working for the seller, not you. They’re paid based on a percentage of the purchase price, so their interest lies solely in getting you to pay more. You need a buyer’s agent, who generally speaking will come at absolutely no cost to you, as they get compensated by splitting the total commission of the listing agent. A buyer’s representative has the same access to properties for sale as a seller’s agent, but their fiduciary duty of utmost care, integrity, honesty, and loyalty lies with the buyer, not the seller.
In case you happen to be moving to an unfamiliar city or neighborhood, the agent you select should have a thorough knowledge of that particular area from the on-set. For overall demographics and data on metropolitan areas, as well as detailed neighborhood information, you can visit sites such as Yahoo! Real Estate, Trulia.com or Zillow.com . When browsing for a new neighborhood, look for signs of economic vitality: a mixture of young families and older couples, low unemployment and good incomes.
If you have the flexibility, consider doing your property hunt during off-season, which can vary based on geographic location. In northern states, for example, low season occurs during the colder months of the year, whereas in Southern Florida it is during the summer. You’ll have less competition and sellers will usually be much more willing to negotiate. Your agent should grasp an idea of what type of property is best suited for you, and will be able to better pinpoint what may be of interest as you go along with the search. Additionally, you can also take your own browsing to websites like Realtor.com, which lets you search MLS listed properties based on your criteria. Always be wary of supplying your agent with search criteria that are too restrictive.
When you actually start touring properties, bring a notebook and a digital camera to help you remember details. Your real estate agent should supply you with a description of each property and the lot it sits on, the property tax assessment, the asking price, and other vital information, sometimes even a blueprint of rooms. Your camera and notebook are there to record other important details. Don’t automatically reject a property just because it doesn’t measure up to your desires, either in features or price. You can always add or update certain aspects. Since the asking price is just a starting point for negotiation, you will be making offers and counteroffers as both parties seek an acceptable price.
