Buyer’s Real Estate Agent Part 1: 3 Questions for a Buyer’s Agent

This is part one of a three-part series about the steps with working with a Real Estate Agent.  With so many agents out there, sometimes it can be hard to determine who to work with and what do once you start the house hunting.

In part one, we will discuss what to look for in an agent.  This can be imperative because many will tell you the same story over.  So here are three starter questions.  If they can’t answer these questions, then you should move on:

1. What is your strategy for finding a home?

• • Bad answer: If they tell you that they will set you up on the Multiple Listing Service (MLS) and when you see something you like, they will go from there, run.  This is a sign that they are lazy and don’t really have a strategy.
  • Good answer: A good agent will tell that they will at the very least do the following:
    • Not only look on the MLS, but also for pocket listings. That they have multiple sources of pocket listings to give you a competitive advantage over other buyers.  Basically, that they don’t rest until they find you a home.
    • Do due diligence on the homes. This includes permit history (if accessible), research on the Sellers and listing agents, and explore creative opportunities for the home.

2. How do determine fair market value for a property?

• • • • Bad answer: They may tell you that they pull up homes within a half mile and take an average.  From there they give you a range and call it a day.
      • Good answer: Doing a radius and just an average is dangerous.  The homes that they consider may not be relevant to the subject property.  Really what it takes is a more analytical approach, just like an appraiser will do.  This means looking at each comparable home, analyze it, and provide a recommended strategic price, as each situation is different.  Sometimes it is worth offering list price, less or offering over the asking.

3. What are some of your accomplishments for buyers?

1. 1. • Bad answer: Saying that the agent closed a few deals for clients but that’s about it.
      • Good answer: This is for the agent to shine and show off his or her skills.  This can include being a top producer in the area, such as being a verified member of the Top Agent Network or achieve a ranking in Real Trends Top 1,000.  This can also be a time to go over case studies.  For example, multiple times having their buyers’ offers accepted, even though they weren’t the highest offer, or how the agent was able to successfully renegotiate the price or had the Seller pay for the Buyer’s closing costs once under contract.

These questions are just scratching the surface.  Make sure you are working with a professional who not only takes this seriously but is serious about real estate.  You may have friends or family who do it on the side, but that they not be in the best interest for you.  This is the biggest investment for most, so take it earnestly.