Selecting the inappropriate realtor could lead to significant expenses, delays, and anxiety. Purchasing property typically represents an individual’s biggest investment, and therefore having a qualified representative is more important than most people think.
Are you actually ready to purchase a home?
The first inquiry is about personal disposition, but relative to funds on hand is much more important.
- How much money do you have saved?
- How is your credit rating?
- How much monthly debt are you currently servicing?
- Finally and most critically… Are you prepared to remain in the same location for a minimum of 2-5 years?
If you find your circumstances will change within 5 years, it could be more advantageous for you to rent than buy your principal residence.
Most buyers expect their first call will be to an agent. What they should do, however, is call a lender first to get pre-approved.
Why should you talk to a lender before contacting an agent? Knowing how much you can afford and how much a lender thinks you can afford are often two very different points of reference. Lenders routinely approve applicants for more than they would be able to afford in the long run. It is advisable to establish your own budget or parameters for affordability.
Trusting a Realtor: What Should You Consider?
After your finances are settled, the next step is to find an agent to work with. Some agents will be better suited to help you than others!
Make sure to ask the following questions when interviewing potential agents:
- What type of properties do you tend to specialize in selling?
- Are you knowledgeable about the area we are looking to buy in?
- Can I see some of your previous sales or reviews from clients?
You should also expect your agent to ask you some questions regarding your budget, goals, lifestyle and what might disqualify a particular property for you. If they don’t seem to care about your requirements, that should be a warning sign.
It’s All About Their Personality
During this experience, you and your realtor will be communicating often, touring various houses, negotiating on different properties, and making decisions as a team; so if their personality is bothersome or makes it seem like they can’t be trusted, that can have a negative impact on your entire experience.
You’ll want your realtor to be:
- Someone who is easy to communicate with
- Someone who is honest and has integrity
- Someone who can handle stressful situations calmly
- Someone who is truly working for you!
Trust is not up for compromise.
Avoid Working with Part-Time Agents if Possible
While it may seem attractive to hire a friend, cousin, or family member who does real estate as a part-time career, home buying is typically not a 9:00am to 5:00pm job.
Offers are made very quickly. Deadlines are critical. Delays can be detrimental to the deal.
This should be left to someone that does this as their full-time job, not as a part-time job.
New Agent vs. Experience Agent – Is New Always Bad?
Not always.
An agent that is new may be just as good if they have someone mentoring them or have a successful team behind them. This combination may allow for energy (hustle) as well as experience from all team members helping them develop and get experience quickly.
The critical thing is to ensure this agent has support so they are not on their own to figure out what to do for you in this transaction.
Buyers Typically Do Not Pay Realtor Fees
Most first-time buyers do not know this: Most times, the seller pays the commission for both Realtors; therefore, you will receive professional assistance free of any out-of-pocket charges (in addition to the costs of the transaction).
Because of the complexity of the transaction (legal, financial, Inspections) you may actually increase your risk by trying to save money by not having an agent.
The reason a reliable realtor can prevent costly errors is due to all the moving parts in a real estate transaction: inspections, negotiations, paperwork, timelines, and disclosures. The failure to include or miss one essential detail or step, could cause you regret down the line, or it may be that you will have to fix something that could have been prevented with the reatlor’s help.
An experienced agent will have the following skills to assist you:
- Identify potential red flags.
- Advise you on negotiations making you more successful.
- Protecting your legal rights.
A realtor’s value may not be apparent to you right when you start working with them, but as you both continue to work together, the value will become clearer.
When you are considering the right person to represent you as your realtor, it is not about picking the first one you hear. Instead, you should locate someone that has experience, is available, is trustworthy, will be following your goals.
Get your financials together before looking for a real estate agent.
Speak to your lender.
Interview agents and treat it like an important hiring decision; you have put a lot of time, effort, and money into this process. Your future self will appreciate you not rushing this important decision.
