Myths - Working With Real Estate Agents
I'd like to use a good bit of space helping you understand buyer-agent relationships. That's because I know you'll have a better home buying experience if you learn the ins-and-outs of working with real estate agents before you make your first phone call to an agency. Get started by avoiding these common myths about real estate agents.
- Home Buying Myth Number 1
I'll get the best deal on the house if I call the agent listed on the For Sale sign.
Maybe, maybe not. That agent represents the seller and is contractually bound to get the best deal for the seller. That doesn't mean the agent can't work with you in a fair and professional manner as a dual agent, but it does mean you should not disclose confidential details to the agent until you are assured that the agent will keep your information confidential.
Bottom Line If you tell a seller's agent the top dollar you will pay for a house, the agent must pass that on to the seller. A dual agent cannot do that. Agency laws differ in every state, so take time to learn about agent duties and loyalties before you enter the home buying market.
How Do Agents Differ? Agent Loyalties Explained
- Home Buying Myth Number 2
The agent told me I had to sign a Buyer Agency agreement before he would work with me, so I did, and now I'm unhappy with the relationship.
You might know you are a good match with an agent on the very first day you meet, but what if you aren't sure? If an agent asks you to sign an agency agreement before you feel comfortable about it, try one of these alternatives:
Ask the agent to work under a verbal buyer agency agreement for a short time. Some states allow this, giving you time to become familiar with the agent before you sign a formal agreement.
Ask the agent to write a buyer agency agreement that covers a very short period, a day or a week.
Find out if the agent can offer a non-exclusive buyer agency agreement. The agent would be your buyer's agent, but you would not be tied exclusively to her.
Let the agent continue to be a seller's agent--just don't disclose confidential information. Bottom Line
If the agent will only work with you if you immediately sign a lengthy buyer agency agreement, you might be better off seeking another agent.
Hiring a Buyer's Agent
- Home Buying Myth Number 3
I can find more homes for sale by calling lots of agents.
Maybe--but maybe not. If you are home shopping in a specific area, and the agencies belong to Multiple Listing Services, it means they all have access to the same properties.
Ask agents what areas they cover. Small-town agents might work a multi-county area. Agents in a city might restrict themselves to certain neighborhoods or subdivisions.
If you sign agreements with more than one buyer's agent, make sure the contracts are worded so that areas and duties do not overlap. For instance, Agent X works for you only in County A. Agent Y works for you only in County B.
Bottom Line Researching and showing properties is time-consuming, so you'll get better service if you find an agent you like (within a given area) and stick with that agent.
- Home Buying Myth Number 4
The agent with the most listings in town is the best agent to call.
Think about that. If an agent has that many listings to deal with, how much time do they have for buyers, especially buyers who might want to look at properties other than theirs?
Many top agents are turning to team systems, so time might not be an issue, but it's something to ask about when you interview an agent.
Bottom Line
A brand new (competent) agent can be every bit as effective as a seasoned pro. Someone working with fewer clients will have your needs in mind constantly. Hire the person, not a lineup of listings