What is your favorite question to ask a buying agent you are considering? (documents, dual agency)

[Silverfall]

1) Does your company give you an incentive to sell in brokerage homes over other brokerage homes?

2) Do you charge a transaction fee or other fee at closing other than the commission received via the MLS?

3) Do you help buyers with due diligence such as pointing out hazard zones (flood zones, landslide hazards, etc), pulling permits, historic districts, etc?

4) Do you review disclosure statements and title reports or just give them to me?

5) Who covers your vacations or time off?

[jadedlady]

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.

[kokonutty]

I'd ask him (or her) about earning more when the price is higher and how that would have an affect on his ability to negotiate for a lower price for you.

[1insider]

Are you willing to work with me if my expectations are unrealistic?

[MikeJaquish]

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:

Originally Posted by MikeJaquish

Questions:

1. Is real estate your full-time, day job?
You cannot afford to work with a part time buyers' agent in this market. It goes too fast right now.

2. Do you have time for another client? How many buyers are you currently working with? How many in my price range? If the same property seems like a fit for two of us, how do you handle that?

3. How do you communicate? How often do you "check" email? Do you take emails on your phone? Do you do goofy texting on important topics without context or reference?

4. Do you or your firm charge a paperwork fee, brokerage fee, document fee, administrative fee, transaction fee, or any other junk fee? If the answer is "Yes," you need to really justify that the agent is really all that good, or demand that junk fees be waived.

5. Do you make more money, or have other incentive, to favor showing me your firm's listings? Will you show me listings from all firms?

6. Do you require dual agency acceptance? If yes, that is a red flag.

7. Do you handle the client through closing, or will I be handed off to a team member for looking and buying? If you will be handed off, meet the team member before engaging the agent.

8. Will you let me "Test Drive" you prior to signing a buyers' agency agreement? That is a benefit for you and the agent, IMO. You get to see how the agent presents property. The agent gets to see how you view properties.


Any agent you are considering engaging should have an hour or two to sit with you, go over some typical documents and explain them to you, and discuss their services and your needs.
You should be able to have SAMPLE documents to take with you and/or emailed to you.

If an agent ever tells you that "Buyers' Agency is FREE, and doesn't cost you a penny," grab your purse and head for the car. Ain't nuthin' FREE.

If it feels like a good fit with a particular agent, don't hesitate to sign a buyers' agency agreement. It puts you one step closer to buying, and is a totally separate meeting and function from writing a contract on a home.
You can make an agency agreement for as short as they may agree to and for as long as a year.
Never sign an agency agreement of any duration with any agent without an escape clause. "Either party may terminate this transaction for any reason prior to location of a suitable property" fits nicely in Section 13 of the NCAR Standard Form Buyers' Agency Agreement. Let that agent continue to earn your business through regular service daily or weekly, as needed.

[Merjolie8]

From our experience:

How many clients are you working with right now? If the agent already is working with 10-15 people, it's not going to give priority to you and he'll be very busy to set up showings, and in general be on top of your search.

The team one is good too.

For us, it was frustrating when we were buying in another state, that the agent was not very helpful in educate us about the areas. I get that he can't tell you flat out this area is x or y, but there are ways to do it that are not illegal or discriminatory, like school grades, taxes, services, crime rates and such.

[MikeJaquish]

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.

[arjay57]

My main concern would be their familiarity with the particular area where I'm looking. Not just what properties are coming on the market, but what's happening in local politics, commercial development, and so forth. I need somebody plugged into the local community.

To the extent possible, I'd also like to get a handle on their negotiating strategies and skills. Will their ego or financial interests become a factor? I've occasionally seen transactions go awry due to personality factors.

[dblackga]

Ask them their policy/strategy for dealing with FSBOs or other agents who don't offer a typical buyer agent commission for the area (i.e., if the typical commission sharing in the area is 3%, and a listing is only offering 1-2%, what is their policy? Do they show the property? Do they expect the buyer the make up the difference?)

It should be spelled out in the buyer brokerage agreement, but it is sometimes not addressed directly. Make sure you understand the agent's position on this, and understand that sometimes it's not the agent's personal position, but the position of their brokerage. Some brokerages give the agents more freedom to adjust commissions than others.

[Silverfall]

Originally Posted by MikeJaquish

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.

Agree. I distinguish between active and passive buyers. Active have criteria that demand to see a lot of homes, and passive have very strict criteria which means we may go see 1-2 homes a month. Still a buyer, but not needing daily time.