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Home Financing - First Time Buyer Mortgage - Choosing a Real Estate Agent

Finding the Right Real Estate Agent

If you are shopping for a new home you may also be in process of trying to find the right real estate agent to help you with your search. Not all agents are created equal and it is important to know exactly which party the agent represents. For instance, the listing agent may not represent your interests unless you are in a state that allows dual agency. Dual agency can be tricky business so most states do not allow the practice. It can be confusing determining what information can be and should be disclosed between all parties. You may want to strongly consider turning to a buyer agent or exclusive buyer agent whose fiduciary duty it is to represent your interest first and foremost. Exclusive buyer agents only represent buyers and do not list property. You can find a list of exclusive buyer agents online at www.naeba.org.
Here are some other tips for choosing a real estate agent:
  1. Look for experienced agents and then interview some “greener” agents as well. Experience is usually a big plus but a new hungry agent may be willing to work even harder to find you the home of your dreams. You can always have your attorney look over the paperwork before submitting your offer.
  2. Ask for personal and professional references
  3. Try to obtain the names of some referrals from friends and/or family
  4. Make sure that the agent is willing to work on your schedule. If you can only look at houses on the weekend or in the evenings, you need to find and agent that will work those hours as well.
  5. Ask your agent if he or she will actively search for for-sale-by-owner listings and send out mailings to the residents of the neighborhoods that you are interested in. The more proactive the agent - the better.
  6. Make sure to ask your agent about your choices for representation (i.e. buyer agent vs. exclusive buyer agent and how the agent will be compensated)
  7. Find out if the agent’s company has access to the local Multiple Listing Service

Deciding on Whether to Sign an Exclusive Buyer Broker Agreement

More often than not, when a house is listed by a selling agent and one’s buyer agent sells the property, the seller paid commission is split between the two agents. This is great for you and your agent because it has not come out of your pocket. So what could happen if you have signed an Exclusive Buyer Broker Agreement and you locate a house that is for-sale-by-owner down the street? If the seller is unwilling to pay the commission, then you may get stuck paying the agreed upon commission out of your pocket even if the agent did not locate the property for you. It is a sticky situation without an easy solution. Your agent may full well deserve compensation if they have spent time showing you homes and researching the market. On the other hand, you need to be aware that you may be the one footing the bill if you want to buy a home where the seller is unwilling to pay your agent. We suggest talking to your agent about the various pros and cons of entering into an exclusive contract and then making an educated decision. Take the time to listen to your agent about the various choices for representation and then do some independent research before signing on the dotted line.
First time buyer mortgage
Determining what you are qualified to borrow and getting pre-qualified
Rent Versus Buy
Beginner Mortgage Checklist
Credit Scores and Mortgage Rates
Choosing a mortgage company
Should I consider 100% financing?
Pro & Cons of adjustable rate mortgages
What types of loans are available for the self-employed?
Why do mortgage rates change?
What is a mortgage broker?
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