Home Buying 101 - Step 5: Get a Buyer’s Agent
January 19th, 2007 categories: Home Buyers
I took a little break from my Home Buying 101 Series. This is the fifth installment of a total of twelve. Click here for the other posts in this series.
Previously, on Home Buying 101, I told you about the rights you have as a home buyer and borrower. Now, it’s time to find a good agent - a buyer’s agent that is. As a home buyer, you need to have an advocate on your side, looking out for you. Your buyer’s agent will not only show you houses, but will help you locate financing, negotiate on your behalf, educate you on the buying process, set up inspections, locate an attorney and other people who are integral to buying and will help you determine value.
In order to receive the benefit of all of these services and truly be represented by an agent, you will be asked to sign a contract. This contract also ensures that the agent can be paid. While sellers pay for the services of a buyer’s agent on paper, the buyer really pays the agents because the cost of commissions is built into the home price. However, for arguement’s sake, sellers pay the buyer’s agent fee at closing.
A buyer’s agent may represent both buyers and sellers. Of course, there are agents who represent both buyers and sellers and who do so very honestly, professionally and are true advocates for their clients.
You should work with an agent who represents buyers at least 50% of the time. Do not, and I repeat do not, assume that the person who has the most signs in an area or the most ads in a real estate book works with a lot of buyers. The only way to know is to ask the agent.
You may also want to look for the ABR (Accredited Buyer’s Representative) designation. This means that the agent attended special classes to learn about buyer representation and had to have a certain number of transactions where they acted as the buyer’s agent.
Where can you find a buyer’s agent? You can look for agents who have the ABR designation here. Another great place to find an agent is through people you trust - an attorney, an accountant, family, friends, etc.
I can’t help mentioning, you may have missed your true calling: writing!
That said, I have had terrible experiences here in CT with realtors:
1) Having to literally beg agents to show me properties not listed on the MLS ( Sheesh, this is CT where Yankee ingenuity and frugality should be both expected and celebrated).
2) An agent clearly wanted to sell me her own home. She used tactics that were so blatantly aggressive and obvious, I felt my intelligence was insulted. I was given information that was in direct contradition to the press releases of her own agency. When confronted on deceitful claims, I was told I had “misunderstood” what had been said. I refused to sign a dual agency contract and was told I was being difficult. When I expressed my outrage I was told I would not be released from my exclusive buyers contract. Fortunately, I was able to ride out my contract ( my employer was so outraged he offered his own carriage house ).
Real Estate dealings here are so very different from what I am used to.
Wow, I did blather on a bit, thanks for letting me vent.
I started this blog to vent, too.
The issue that agents have with for sale by owner properties is that there is no commission being offered and it’s more work than they want. However, many homeowners are willing to pay the agent the commission. The problem then becomes dealing with the homeowner directly.
I don’t understand agents who won’t release unhappy clients from contracts. I never push folks - if you like me, great. If not, I’d rather have you tell me and part ways then make me miserable for the rest of the contract. I only want to work with people who want to work with me.
Is there any estimate for the number of exclusive buyer’s agents practicing in Connecticut? I went to the NAEBA to browse the directory but I didn’t want to get someone’s hopes up that I was a prospective buyer so I didn’t use the referral link.
I know of two brokers only - number of agents is probably around 10.