How to Retain a Real Estate Agent to Buy a Home

Most buyers don't realize that many real estate agents actually have a financial responsibility to the seller, not the buyer. Here's how to hire a buyer's agent whose first responsibility is to you.

Difficulty: Moderate

Instructions

Things You'll Need:

• Telephones
• Real Estate Attorneys
• Pads Of Paper
• Pens
• Personal Organizers
• Pens

1. Locate buyers' agents in the area in which you want to buy. Call local real estate offices; ask friends and associates; and investigate associations such as the Real Estate Buyer's Agent Council.

2. Call three or four agents to discuss your needs.

3. Ask prospective agents about their views of a buyers' agency and what their fee structure is. Do they require a percentage of the sales price, do they work for a flat fee, or will they be paid by the seller?

4. Ask prospective agents about their 'feel' for the local real estate market, and listen closely to see if they appear to be up on what's happening.

5. Meet face-to-face with the buyers' agents you like so you can learn more about them.

6. Ask for references and check them. Ask references tough questions such as, 'What would you have changed about this agent?' and 'Did this agent do anything you didn't like?'

Tips & Warnings

• Look for designations in agents' titles. The designation for buyers' agents is ABR (accredited buyers' agent).
• You generally don't need to pay an agent who is helping you buy a home. The seller's agent compensates a buyer's agent.
• Get all agreements in writing.
• If you have doubts about a pending relationship with an agent, talk to a real estate attorney.

[susanhorton72]

on 10/8/2009 Nice article. Fortunately in a regular escrow, the seller pays for both the listing and selling agent's real estate commissions. The buyer does not.

[realtorconnie]

on 3/9/2009 An agent who has a home listed is the seller's agent. However, if that agent is also your agent, but you do not have a Buyer's Agreement signed, you may sign one together, and the agent's broker becomes a dual agent. Buyers do not (should not) receive reduced services, but that agent, if you have chosen one who is ethical, will tell you that it is her duty to do her best to help both of you and not to harm either of you. If this is a comfortable position for you, fly with it! If it is not, tell her so, and ask her for a referral of another agent who can help her with that particular home if you want to make an offer on it. Most realtors love to help people, and if they have a house listed, they know more than a buyer's agent about it, and can help you the best with it.

on 3/10/2006 Some listing agents don't like buyer's who are represented by a buyer's agent, because the listing agent may have to share his or her commission on the sale with the buyer's agent. I'd be leery of buying a house listed by an agent who felt that way.

on 11/22/2005 I found the National Association of Exclusive Buyer's Agents and filled out their form to find an agent in Chicago. I received a call the next day saying the agents in the area said there were no homes available in my price range (<$170k). A simple search of the MLS shows hundreds of houses available in that range, so it seems more likely that they don't want to represent a buyer whose purchase will only result in $5k for the agent.

on 11/22/2005 National Association of Realtors statistics show that a home sold through a realtor will get the seller an average of 9.5% more than an FSBO (For Sale By Owner) transaction. Even considering the commission, that's still 3.5% more than an FSBO. It's basic economics of supply and demand. The realtors in your area will have many more potential buyers for the home than the FSBO will ever have. More buyers mean higher prices in less time.