Buying - Working With a Real Estate Agent
How do I find a real estate agent?
Whether you are a buyer or a seller, getting a recommendation from a friend or work colleague is an excellent way to find a good agent. Be sure to ask if they would use the agent again.
A good agent typically works full-time and has several years of experience at minimum.
If you are a
buyer, you do not usually pay for your agent's services. All agents in a transaction are usually paid by the seller from the sales proceeds. In many states (including California), this means that your agent is legally acting as a sub-agent of the seller.
If you are a seller who will hire an agent to represent you, keep in mind that the best choice is not always the agent who is recommending the highest asking price for your home.
Your agent should provide a comparative market analysis of local home prices in your area.
Be sure to evaluate all aspects of the agent's marketing plan and how well you think you can work with the individual.
How much does my real estate agent need to know?
Real estate agents would say that the more you tell them, the better they will be equipped to negotiate on your behalf. However, the degree of trust you have with an agent may depend upon their legal obligation. Agents working for buyers have three possible choices:
1) They can represent the buyer exclusively – called single agency, or
2) represent the seller exclusively – called sub- agency, or
3) represent both the buyer and seller in a dual-agency situation.
Some states (including California) require agents to disclose all possible agency relationships prior to entering into a residential real estate transaction. Here is a summary of the three basic types:
In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller. Be aware that the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-broker, who brings the ready, willing and able buyer to the table.
Dual agency exists if two agents working for the same broker represent the buyer and seller in a transaction. A potential conflict of interest is created if the listing agent has advance knowledge of another buyer's offer. Therefore, the law states that a dual agent shall not disclose to the buyer that the seller will accept less than the list price or disclose to the seller that the buyer will pay more than the offer price, without express written permission.
A buyer may hire his or her own agent who will represent the buyer's interests exclusively. A buyer's agent usually must be paid out of the buyer's own pocket but the buyer can trust them with financial information, knowing it will be kept strictly confidential. However, please note that in order to submit a purchase offer to the listing agent, the buyer’s agent will need to provide source of funds (a bank statement) showing the seller that you have all the required funds to be able to close the transaction. Your agent will block out any personal information (such as account numbers).
7 Reasons to Work With a REALTOR®
REALTORS® are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics. When you're buying a home, here's what an agent who's a REALTOR® can do for you:
Act as an expert guide: Buying a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. A knowledgeable real estate agent will know what's required in your market, helping you avoid delays and costly mistakes. Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.
Offer objective information and opinions: A great real estate agent will guide you through the home search with an unbiased eye, helping you meet your buying objectives while staying within your budget. Agents are also a great source when you have questions about local amenities, utilities, zoning rules, contractors, and more.
Give you expanded search power: You want access to the full range of opportunities. Using a cooperative system called the multiple listing service, your agent can help you evaluate all active listings that meet your criteria, alert you to listings soon to come on the market, and provide data on recent sales. Your agent can also save you time by helping you winnow away properties that are still appearing on public sites but are no longer on the market.
Stand in your corner during negotiations: There are many factors up for discussion in any real estate transaction – from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs and allows you to do due diligence before you’re bound to the purchase.
Ensure an up-to-date experience: Most people buy only a few homes in a lifetime, usually with quite a few years between purchases. Even if you’ve bought a home before, laws and regulations change. Real estate practitioners may handle hundreds or thousands of transactions over the course of their career.
Be your rock during emotional moments: A home is so much more than four walls and a roof. And for most buyers, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you when emotions threaten to sink an otherwise sound transaction.
Provide fair and ethical treatment: When you're interviewing agents, ask if they're a REALTOR®, a member of the National Association of REALTORS®. Every member must adhere to the REALTOR® Code of Ethics, which is based on professionalism, serving the interests of clients, and protecting the public.
Can I use an Agent to purchase a brand new home?
Yes – however buyers should be aware of the differences inherent in working with sales agents who are employed by the developer, rather than traditional real estate agents.
Various developments will cooperate with a buyer’s agent and pay the buyer’s agent commission (so that you don’t have to – if you decide to have your own agent represent you).
However, the developer will commonly require that an outside agent be present, and sign in, the first time a prospective purchaser visits a site.
At times when buyers use an advertisement to find and visit the development themselves first, developers can refuse to pay any commission regardless of how helpful an agent may become later in the process. It is advisable to call the development first and inquire about their policy on compensating real estate agents if you are working with one.
Aiello & Associates has access to various new home developments in various cities, categorized as:
Inventory homes
To-be-built
Coming Soon
If you are interested in purchasing a new home, please let us know by completing the form below and enter as much data as you know, and we will get back to you.
New Home Development - Property Inquiry
