1. The first thing to understand about real estate agents is that very few work on salary. Most real estate agents are independent contractors who are paid a commission based on the number of homes they sell. The commission, paid from the sales proceeds, is usually split equally between the listing agent and the selling agent. Once the deal is closed, each of those agents usually has to pay a share to the broker who owns the office where he or she is affiliated.
2. Expect to sign a lot of paperwork. The paperwork will include the listing agreement and broker’s agreement. Make sure you understand the details of this agreement because it creates a relationship between you and the agent, and explains the agent’s duties to you and vice versa. Do not feel silly for asking your agent to explain a form to you. It is their job. Many forms are second nature to agents but not to you, so ask for explanations until you are satisfied you understand.
3. No agent will want to buy/sell your house more than you. It’s important that you make your expectations clear. Let your agent know how you want them to communicate with you and how often. Phone calls, e-mails, text messages, instant messages, or all of the above? Set realistic goals and a time frame to find your home. If you are displeased, say so.
4. Make sure the agent does real estate full time. Whether you’re a buyer or seller, you want to choose an agent who is actively following the market every day. If you’re buying, you want an agent who can jump on new listings and show them to you immediately. If you’re a seller, you want an agent who is always available to show your home to prospective buyers. A good agent should know about other area properties that are available “off the top of his head.” They should also have an office and phone number you can reach them at any time.
5. Don’t believe the hype. Agents should come to you with proof, not wild promises. For example, if two agents say they can sell your house for $600,000 and the third says $700,000, the high bid is likely an exaggeration to attract your business. In the trade it’s known as buying a listing. In the end, you’ll be the one who pays because the high price will scare away potential buyers before you inevitably drop the price. Make sure you get promises in writing that make sense.
6. Networking is important. Agents should not only be part of local groups, but also connected online through different Realtor organizations. The better your agent is connected with the local community the easier it is for others to trust them. Agents should also be able to provide you with people who can help with the title, escrow, style, look, repair, inspection and appraisal of your home. A real estate agent should generally be able to recommend more than one provider and shouldn’t receive any compensation for these referrals.
7. They’re proactive. A good agent should be proactively calling potential buyers, communicating with existing customers and constantly chasing new leads. The key element of being proactive is keeping the client well informed. You shouldn’t feel as though you always have to reach out to your agent.
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