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Lets Face it, real estate agents earn huge commissions, this raises the question “why should I hire a Realtor instead of FSBO “? The truth is , their help is not legally required, although most homebuyers want an agent or realtor to help them.

So the question is, why hire a buyers agent for real estate? Are your interests being well represented? What should you look for in a home — or a neighborhood? What about condos and co-ops? One concern that drives many people to hire a real estate agent (or a ©Realtor) is that paperwork will be flying around like a small tornado, and it can be very helpful to have someone familiar with the process to deal with it.

Other areas of the transaction will be happening very soon too such as, hiring inspectors, negotiating over who pays for needed repairs, and so on, all of which is second nature to an experienced agent or ©Realtor.

One of the best reasons to hire a Realtor is that the sellers are likely to use their own agent and you want to keep that agent from taking over the process. In fact, the seller’s agent may pressure you to let him or her represent both of you, in a “dual agency” relationship that primarily benefits the seller. (The less scrupulous sellers’ agents don’t make it clear that they’re working for both people but if only one agent is involved in your transaction, it’s fair to assume that the agent’s loyalties are with the seller.)

It’s better to have your own agent than settle for dual agency. Of coarse if you ar a savvy buyer, using the threat of hiring a buyers agent is a great way is a great way to get the sellers agent to work on your behalf in the way of influencing the sellers to make price concessions. Because when you hire a buyers agent the sellers agent has to split the commission, usually on the buyers agents favor according to the Atlanta Realtors we spoke with .

Keep Control Over the Process

You’re the only one who really knows what you want in a house. Even if your agent is scouting out homes for you, there’s a lot to be said for scanning the listings and attending open houses yourself. You may find out that your agent doesn’t’t understand your needs as well as you thought.

Even if you do use an agent, it’s wise to learn as much as you can about the home-buying process. For example, educating yourself about the market value of comparable homes in the area will protect you against over-aggressive agents who might urge you to bid high for a particular house.

In addition, educating yourself about common legal concerns — especially if you have unusual plans for the property, such as adding a second story or changing the driveway — will help you understand when it’s time to consult with a lawyer. And you’ll prevent misunderstandings and reduce the stress of being told to “sign here” if you study the contents of the various real estate documents in advance.

Incomes for Real Estate Agents

Real estate agents normally work on commission, not salary according to Atlanta Realtors . They receive their slice only after your home search is over, the contract negotiated, and the transaction complete. The seller typically pays the commission to both the seller’s agent and your agent. What Is the Average Real Estate Commission?

The national average is between 5% and 8% of the sales price, to be split between the two agents when the sell closes, you may also want to consult with the new breed of agents that are considered a discount broker who offer discount real estate commissions. This percentage isn’t cast in stone, however. For example, the seller might negotiate the percentage down if the house is particularly expensive. (And in probate sales, the court sets the commission.)

A survey of Atlanta REALTORS© on the typical commission arrangement also exist. For example, some buyers prefer to hire an agent and pay the commission themselves, figuring it will make the agent more loyal to the buyer’s interests, and provide grounds for a drop in the sales price. Or, less commonly, you may find an agent willing to perform limited tasks for an hourly fee (in which case you’d also want to ask the seller to bring down the sales price accordingly). Discount brokers are also available, usually providing you limited services, or interactions via the Internet, at a commission as small as 1%.

Choosing an Agent

The quality of real estate agents varies dramatically, from fabulous to frightful. To find an agent who rates at the fabulous end of the scale, look for one who is:

• a person of integrity
• in the full-time business of real estate — you don’t want a dabbler
• experienced with the types of services you need
• knowledgeable about the area where you intend to live
• sophisticated in business matters
• tuned in to your tastes and needs
• licensed by your state, meaning the agent has met minimum levels of education, training, and testing. You’ll get someone with even more education if you hire a “broker” (someone with the power to oversee ordinary agents).
• a member of a realtor’s trade association such as the National Association of Realtors (NAR), meaning the agent is privy to listings, market information, and other data that nonmembers must struggle to obtain, and
• a recipient of additional credentials from the local realtors’ trade association, indicating higher levels of professional skill. (Look for initials on their business cards — for example, NAR offers such credentials as a “GRI” (Graduate Realtors Institute) or the even more advanced “CRS” (Certified Residential Specialist).) You won’t find too many agents with such credentials!

For recommendations, go to friends, family, and coworkers — particularly those who’ve recently bought or sold a home. Once you’ve got a short list of promising real estate agents, let each know you want to interview him or her for 45 minutes to an hour. You can talk in person or on the telephone. You’ll be testing not only the agent’s knowledge, but his or her cooperativeness and punctuality.

During the interview, ask the agent questions from the list below. Consider how well the agent listens to your concerns and answers your questions clearly and directly. Only agree to hire an agent after you’ve found one you’re enthusiastic about. Then, commit your agreement to writing, and play fair by not signing up additional agents to help you.

Questions to Ask a Prospective Real Estate Agent

• How many homes have you found for buyers in the last year? Ask for the addresses of these recent transactions, and find out the selling prices. This will help you see whether the agent truly works with clients similar to you and how successful the agent has been.
• How can you help me afford the home I want? Ask the agent what you can expect for your money, and for suggestions on special and new mortgage loan programs and recommended mortgage brokers. Also ask about recent insurance and tax changes.
• How will you communicate with me? Will the agent call you, or use email? How often will you hear from him or her? Once a week is a minimum in a stable market, but daily check-ins could be necessary in a hot market.
• How do you organize your work? Ask to see logs, checklists, worksheets, and other tools or documents the agent uses to keep track of the various details — from the house search and financing through negotiating an offer and closing the deal.
• Will you be representing the seller in any way? Make sure the agent won’t be acting as a dual agent. If the agent will be representing you exclusively, ask whether he or she expects you to pay the commission instead of the seller. (You don’t have to agree to this in order to have an agent represent you exclusively.)
• Who are some past clients I can call as references for you? If you think you might hire this agent, be sure to follow through with these calls!
• Ask a Real Estate Agent About Relocation Services You may be considering relocating to a new residence. Moving can be stressful and has been recognized as one of life’s major stressors (Holmes & Rahe, 1967). Additional stressors often accompany a move, such as marriage, divorce or retirement. A side-effect of high stress levels can be a temporary deterioration of objectivity or sound judgment. When considering relocating, careful planning and research are essential to maintaining restoring one’s ability to make informed decisions. This article suggests economic questions which should be answered prior to move. More On Complete Relocation Services.

Planning to Sell or Buy a Home? Compare REALTORS® First. It’’s Fast and Free!

Tags: atlanta realtors, Home Purchasing, Mortgage Tips, real estate agents, sellers agents

This entry was posted on: Saturday, March 15th, 2008
Other Categories: Home Purchase
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