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I think it's most important to understand whether they know what they're talking about. I'd ask them to walk me through the process because "I'm new." If they can speak coherently about the closing process and they have deal experience, then you're probably good.
Lastly, it really comes down to cost. If you're buying, I'd ask whether they offer a broker commission rebate to share some of the fee with me. On the sell side I'd ask if they'd be open to a flat fee MLS or a discounted full service listing. Definitely don't just assume you have to pay 6%. Everything is negotiable in real estate from what I've learned.
Everything is negotiable in real estate from what I've learned.
I got that exact advice from an agent I engaged about 10 years ago to help me sell a small commercial property.
After several months on the market we found a buyer and were very close to striking a deal. I asked the agent whether he had enough flexibility in his commission to make the deal happen if I came down another $20K or so.
"That's not negotiable," he replied. "However," he said, "I will ask the buyer if they can make an adjustment." To my surprise, the buyer and/or their agent did agree to reduce commissions on their side by about half a percent, I came down a little, and we signed a contract.
Here's the thing about "How many buyers are you working with?"
A better question may be, "How is your calendar to work me in and be timely in supporting my needs?"
I may be "working with" 10-12 buyers right now.
But, the demands are usually very different.
Some are on board to move quickly on any available property that meets their criteria.
Some are on board, scanning the market for something over the next few months.
Some need a lot of attention, while others are past clients, strong relationships, and more flexible.
I don't ever have 10-12 buyers who have to hop in the car every day and tour 8-10 houses every day.
Do you ever get knowledge of new properties before they come on the market? Would you pass those along to me immediately if they are the type of place I am interested in? Have you had buyers make an as-is offer without seeing the property in person first? If so how has that worked out?
You have a due diligence period to uncover any negatives that may arise upon inspection and after you have received any HOA documents, if there are any. In my state, Nevada, during that due diligence period, if objectionable or undesirable things arise that make you not want to buy the property after you've placed an offer, you can cancel your offer and get your earnest money deposit back. But each state has variations of the law so you need to know what your rights are going to be in the state the property is in. Ask to see the real estate purchase agreement for that state.
Agents that work in a big office where they do a high volume often have access to brand new listings coming in to the office. If you're trying to buy in a seller's market, you need to jump fast and try to get in an offer right away. And don't pussyfoot around trying to make an offer below list or with contingencies unless they are absolutely necessary. You will lose. Strategies and approaches are different in a seller's market. Try to get a feel from the agent of how hot the market is and how he/she is prepared to successfully help you to get the property you want.
If I were you, I'd study the market that you're interested in before meeting with him/her. I look at all the major sites because they are different in the data you can obtain from each site. For instance, trulia gives you crime maps of the area around the property. Redfin usually has the most current and accurate data. If you're looking at properties that have an HOA, quite often the listing agents don't even disclose the amount of the HOA dues which is really bad because it can throw your whole budget off once you find out and can cause you to waste time and miss out on a property that might be better for you.
Thanks for taking the time to write out all the great tips! Much appreciated!!
1. "Do you require clients to allow dual agency?"
Right answer: "No."
2. "Will you give me copies of documents to review prior to asking me to sign them?"
Right answer: "Yes."
3. "When will I see a buyers agency agreement, if required in your state?"
Right answer: "At or prior to first meeting."
3A. "What is the time period for any buyers agency agreement?"
Right answer: "Doesn't matter. See 3B."
3B. "Can I terminate the buyers agency agreement at any point if it is uncomfortable or unproductive?"
Right answer: "Definitely, yes."
4. "Tell me about buyers representation, fiduciary duties, LOADS."
This should happen very early in the conversation, and no later than immediately once you disclose personal information.
5. "How about additional inducements from sellers to you? Will you disclose all bonuses, commission rates, promotional incentives, etc? At what point?"
Right answer: "Yes, as soon as I know of them."
6. "Will you preview homes when possible?"
Right answer: "Yes, when possible."
7. "Will you go to all inspections?"
Right answer: "Yes, if at all possible."
8. "How do you help me rule out homes for various dealbreakers in condition?"
Right answer: "Dual Diligence starts immediately on identifying a property, via maps, aerial views, thorough assessment at visit, local knowledge of builders and conditions in a neighborhood."
You shouldn't have to have a ton of skin in the game with deposits and inspection fees to identify every very obvious flaw in a property. Don't confuse the agent's role with that of a home inspector, but an agent should be able to identify siding material, water line material, general age of HVAC equipment and roof, and many other things before writing an offer for you.
Here is a post I did some time back that is focused on North Carolina, but much of it is applicable anywhere you go:
I'm going to have a much longer list of questions that I originally anticipated, but this is great stuff. Thank you!!
A lot of excellent questions already posted above.. One I might add, as it's becoming more and more popular (atleast in the Northern Virginia market), is whether the agent is part of a team or not. If the answer is yes, what is the agent you're meeting withs primary function?
This one is important! I actually referred a buyer to an agent in your area- I knew they had a team but the lead agent told me he would be personally working with my buyer. Well, they actually ended up passing him off to an inexperienced agent- this after the buyer had told me he wanted someone experienced! He did not sign a buyer's agency agreement, fortunately, and I ended up referring him elsewhere; he was very pleased with the agent he needed up with.
I'm meeting with a real estate agent (I am coming from out of state) that I am considering. I'll be visiting the NoVA area for work, and thought I'd meet with him for coffee. I need some help coming up with good questions. As a buyer, what is your favorite question to ask to get to know about your potential agent?
Tell me the story of your most frustrating experience representing a buyer.
How do you think acting as a buyer's agent differs in approach from acting as a listing agent?
What's your biggest red flag when it comes to a potential property?
I would have the meeting in his office, so I could make sure he wasn't a 'top producer' (they will have plaques for that on the office wall). There's a lot wrong with hiring a top producer, starting with the fact that if he does you wrong, his managing broker won't care if you complain. The manager isn't going to run all that revenue off just because you're all grumpy that his agent turned out to be a dishonest scum being. The manager knows that Mr. TP can easily go to any office in town and make bank for them instead.
Then again, you've already disclosed a fact that would eliminate him from my consideration: he's male. It's not that I don't believe it's possible for a man to be a good buyer's agent; it's that I think they are often enough lazier that it's worth just ruling them out. I think the women are far likelier to do a good job. I admit it could just be that I feel more comfortable working with women, but this question is about each person's perspective as a buyer, and that's mine.
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