The ultimate step on this whole adulting thing is buying a place of your own. And one of the best allies you can have (aside from an amazing loan officer) on this journey is a licensed real estate agent.
You may be feeling more inclined to fly solo because of recent changes from the National Association of Realtors (NAR) and how that could impact what you pay in agent commissions and the requirement to sign a buyer representation agreement. But having a spectacular agent in your corner can help house hunting go much smoother than trying to do it on your own.
Wondering where to start? Read on for some tips on finding the right person to have your best homebuying interests in mind.
But wait! Before you do, it's always a great idea to get pre-qualified first, before you start shopping for a home - that way you have a number to shop with and can be confident in your home searches. Click the button below to get pre-qualified when you're ready.
Get referrals and search online
If you know anyone who’s bought a home recently, reach out to them one-on-one and ask about their experience. Find out who they used, what they liked, and if there were any problems.
If you don't know anyone in your inner circle who's purchased locally, search engines and social media can be a great place to start. Look carefully at an agent's Google Business Profile and check out their reviews.
Don't feel swayed by big brand names - many brokerages from names you may recognize are independently owned and operated and license the name for professional use. Just because an agent works for a big, recognizable company, doesn't necessarily give any insight into their professional approach to homebuyers.
Education and Experience
As you evaluate your short list of agents, it never hurts to check out their training and credentials. While it's not required or indicative of who's the best, it could mean they're committed to raising the bar of professionalism.
The big ones to look for are:
- REALTOR®: This means someone who is a part of the National Association of Realtors, an organization that requires extra training and whose members commit to professional standards and a code of ethics.
- Accredited Buyer’s Representative (ABR®): This is for real estate buyer agents who focus on working directly with buyers at every stage of the home buying process.
Other designations are available for specialized transactions, such as military relocation, diversity, smart homes, and more. These extra certifications show that an agent is proficient, professional, and committed to your success as a buyer. It also means you can trust that agent when it comes to strategy.
Experience is key to success in real estate, and that goes for both the local area and property types. It's never a bad idea to make sure your agent has sold a handful of properties in the neighborhoods you’re considering. This ensures they know the area well and can help you find the right home in the right location.
Do a vibe check
If you've found an agent (or two or three) you like, and are happy with their education and experience, it's time to set up some introductory meetings.
Even in the face of the changes from NAR, there's nothing stopping you from meeting with several agents to make a good match. It's a lot like dating - both can involve major life decisions and expenses. It's only when you sign the buyer representation agreement that you've committed to one agent (more on that later).
Look for professionalism. And be ready with a few questions about what you’re looking for, and notice if their answers are complete and specific. You're looking for someone who knows their stuff inside and out.
That first meeting is also a good time to get a feel for how the agent does business. Ask for stories about how their recent transactions went and find out which negotiation tactics they use most often.
The Buyer Representation Agreement
Before your chosen agent can start showing you houses, you’ll need to sign a Buyer Representation Agreement.
This is a required step from the recent NAR Settlement that ensures your agent represents your best interests throughout the buying process. It outlines what their commission would be for services rendered.
This is where you might find some pause because it wasn't uncommon to be of the understanding that the seller pays both agents' commissions. In many transactions, this may still be the case, but it's important to understand this expectation up front as it could adjust your purchasing power.
The good news is that agent commissions are fully negotiable - you're still in control through this entire process, you just have an awesome co-pilot alongside you.
Ready to get started?
As we said at the beginning of this blog, it's essential to get pre-qualified first to shop with confidence and know the kinds of homes that are in your budget and your price range. Pro-tip: Agents LOVE having a pre-qualified borrower right from the get go, because it will help them hyper-focus their search in finding you the right home for your budget. Click the button below to get started.
