Choosing real estate can be tough whether you are looking at a private residence or a commercial property. This makes choosing a real estate agent an even more crucial decision, especially when you do not have as much experience in knowing what to look for in an ideal property. While you can follow advice from a friend or someone else who has had experience in this area, it is still a good idea to keep a few pointers in mind so that you choose an agent who will work for your specific situation and get you the right property. Since purchasing real estate is probably your life’s biggest financial commitment, you need to go about it the right way. Getting the assistance of a professional is a very good idea but choosing the professional is almost as important as choosing the right property.
Go Local
This may seem like a no-brainer, but you want to work with a real estate agent who has a good sense of the local scene. This may be especially crucial if you are in the market for a commercial property. For instance, you do not want a location traditionally bad for business or you do not want to locate a food business near a sulfur plant. If you are looking for private property, you want an agent that will help you find the home or property that fits your ideal location.
Do Not Choose a Property Before the Agent
You also have the best chance at getting a good agent if you shop around before you get your heart set on a property. For instance, you should not go with an agent you met at an open house because this agent simply wants to sell you this particular property, which may not be the best for your needs. Agents work on commission, so you have to keep this in mind, they only get paid if you buy a property, so it is in their best interest to find one for you. But this can at times cause a conflict of interest. They may push you toward a less-than-ideal property just to get a sale. Rather, you should look for someone who will work with you to help you find the property that works best for you. Most real estate transactions involve a “listing agent” and a “selling agent” both of whom split the real estate commission. Sometimes, the selling agent will market themselves as a “buyer’s agent” but unless you pay them a flat fee and they don’t get a portion of the commission they can still have divided loyalties.
Find a Realtor
Another thing you should consider when you choose a real estate agent is whether or not the agent is also a realtor. A real estate agent who is also a realtor belongs to an authorized national professional organization. Realtors have to adhere to a strict ethics code, which is very important when dealing with an agent. You want to work with someone you can trust with this level of investment. Working with someone who is also a realtor is one way to check for trustworthiness without offending or damaging the relationship in any way.
Consider Your Price Range
Not all agents may work with properties that are within your price range. You do not want to end up working with someone who wants to get you into a property outside of your means because he or she is more concerned with the size of the commission rather than your ideal property. On the other hand, if you are dealing with someone who usually works with homes that could use a little work, you may not get the nicer properties you hope to see despite the size of your budget.
Leave the Dual Agencies Alone
You also need to make sure you work with a real estate agent who will work for you and not the seller. There are some agencies that represent both the seller and the buyer and this is one way to end up with a bad deal. This agent may not listen to your needs and you could end up on the losing end of the deal. You should look into agencies that represent buyers in order to be sure you are going to get the help you need in finding the best property for your home or business.
They Work for You
Remember, ultimately when you buy real estate you are paying for the commission as well as the price of the house. So the real estate agent works for you. You should interview several before choosing the right one. Longevity is a measure of experience. An agent who has been at it through good times and bad is probably better than someone who has just gotten their license.  If you are looking to sell your house you should ask them “how they will earn their fee” and if you are buying you should ask them to explain the current market, and what makes them different than their competitors. And why you should choose them. Ask them which party they are representing–you or the seller? Also, ask if they work full time and how many houses they have sold in the last six months or a year.  In addition, ask for references from previous customers and then actually call them.
See Also:
- Â The Wealthy Buy Assets, the Poor Buy Liabilities, and the Middle-Class Buy Liabilities Believing They Are Assets
- 2 Types of Mortgage Insurance
- How To Develop Winning Money Management Skills
- Investing in Real Estate
- Wise Money: Six Investments To Consider
- 5 US Cities Where Real Estate is Booming
- Loans and Mortgages
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