When it comes to knowing if you are getting a good deal and making offers, it is smart to work with an excellent real estate professional.  I say “real estate professional” because an adviser or mentor does not have to be licensed to be a professional, although to have someone represent you in a real estate transaction, they must be licensed.

Sometimes real estate agents get into the real estate business with little more knowledge than you have.  It is not so difficult to obtain a license, but may take years of sales and experience to be a “seasoned” agent. Many agents work part time and work their jobs more like a hobby, so they may not be creative or knowledgeable of the current market conditions or local market trends.

As a buyer, I want an agent who will listen carefully to what criteria I am seeking in a home and what terms I am willing to consider.  If I am looking for a single family house on the edge of town with seller financing, where I can do some painting and flooring myself, and the agent keeps showing me new flashy condo’s in town that require new loans with higher down payments, then I will need to find another agent who understands my needs and takes my interest to heart.

Real estate commissions are traditionally paid 100% by the seller.  The seller’s agent is called the Listing Agent and they work under a Broker.  The buyer can also have their own agent (who is also paid by the seller), known as the Buyer’s Agent, who also works under a broker. This means that the cost to you as a buyer is the same whether you work with the listing agent or have your own representation with a Buyer’s Agent. A good Buyer’s Agent will also know what other similar properties have sold for in the last few months, so they will of great assistance in learning where the market is and if the price is fair.

Since agents are paid only by commission it is important that you understand and respect that.  This does not mean that you have to work with the first agent you come across. I would recommend you not choose an agent because they are a friend or family member, but rather because they are really good at what they do. If they are really good at what they do and are a friend also, then so much the better, but their knowledge of real estate and your marketplace are more important to you.

Buying a house is not difficult, with good experts on your team it will be very easy, but that does not mean it is simple, quite the contrary, it is a very complex transaction that will be made simple by competent and conscientious professionals.  Always work with the best people, you have too much at stake to do any less.

Learn More About Home-Buying