Starting a Home Search With The Best Buyer’s Agent in 2022
Well, obviously you just hire me, right? I’m kidding of course. I’d be flattered, but this is for the many of you out there all over the country, in different markets, that don’t necessarily know what to look for. Good representation is worth its weight in gold.
I’m fortunate in My market to have wonderful colleagues that do a tremendous job at representing their clients, but I have seen what bad representation can do too, from the perspective of an agent on the other side of a transaction. It will cost you as a home buyer precious time and money. 87% of home buyers are using a REALTOR®, and there’s a good reason for it. We just want to make sure that you are paired with the right one. Here’s My no nonsense guide to hiring great representation and setting your home search up for success.
- Look for a REALTOR®
Let’s start with the obvious question: What’s the difference between a real estate agent, a broker, and a REALTOR®? From the perspective of a home buyer or seller, there is no functional difference between a real estate agent and a broker when it comes to client representation. In Massachusetts there are two different licenses for the two. A broker can operate a brokerage, and manage sales agents, and a salesperson may only practice real estate under the license of a broker.
A REALTOR® is a member of the National Association of REALTORS®, the largest trade group in the country. A member of this organization is a licensed sales professional that adhere to a high standard of ethics. There will be a number of licensed salesperson and brokers that are not part of the organization, so you want to ensure the person you are working with adheres to the standard of ethics.
Membership in NAR requires ethics training, and gives access to education and tools for professionals to provide a better quality service. With a lower barrier to entry into the field, you want an agent that’s fully committed to being a professional.
- Look at the number of recent sales
More sales equate to experience. No transaction is going to be the same, even under ideal circumstances. Selling more houses means your potential representation is going to be well-versed in the many different situations you could encounter. There is no substitute for experience.
Take a look at the agent’s website for past sales, listing portals, and the signs around the neighborhoods you want to live in. You will notice that the same names keep appearing. A large Number of transactions does not necessarily equate to the perfect match for you, but it’s a great place to start. There are more than 1.4 Million REALTORS®, and on average between 5 and 7 Million property sales in the United States every year. The math indicates that the majority of these professionals are only handing 1 to 2 sales per year, if they’re lucky. The Pareto Principle, otherwise known as the 80/20 power rule, would imply that 20% of the agent population handles 80% of all sales in a given year.
- Ask For References
References for the agent you’re thinking about hiring, as well as reviews can speak volumes. Even when a past client is solicited by the agent to write a review, the fact of the matter is that the client probably had a good experience. Take it from me, there are so many things in a transaction that can and do go wrong, and sometimes the agent will take the blame for things that may not be in their control. If the agent has a large number of client reviews, it’s more than likely that they are pretty effective at their job, because they’re the ones that have to prevent and step up to fix any issues.
I’m well into My second decade in the industry, and I’ve only had one, one, prospective client ask me for direct references. Katherine, if you are reading, you were one of My favorite client’s to work with, and clearly one of the most prepared to buy a house. I happily gave her three phone numbers to call. Do what Katherine did. If you encounter an agent that is unwilling, or too busy to provide you with actual references, I would have concerns about hiring that professional.
Katherine was one of the few clients to find me during her research on various agents in the area, on a listing portal site. It may not be a surprise to you that the majority of the clients I have worked with are already part of My network. They are typically people I already know, or friends and family of people I know. These types of references are just as beneficial to you as conducting your own research. If a friend or family member is providing their agent’s contact information, it means they were satisfied with the service they received. If you are recommended an agent from someone in a network, dig a bit deeper and ask what were the biggest challenges of their home purchase. Look for instances where professionals could have made or broken their deal.
I got a phone call from a past client last week, who I sold a house to four years ago. They were letting me know to expect a call from someone they had referred. It was the ultimate compliment. That call isn’t made if I’m not doing My job.
- Find Someone That’s Responsive
Communication is one of, if not the most important factor in regards to working with your agent. I’m going to break down the qualities of communication with your agent into two parts. The first being how quickly and efficiently your questions, concerns, and desire to see property are reciprocated. Some aspects of an agent’s job are not as time-sensitive as others. However, as the search progresses, and we reach the offer stage, you will need to see properties quickly, evaluate them quickly, and present an offer quickly. Time is of the essence. When you interview an agent and look for references, you absolutely want to make sure these needs are met.
The second part of communication in a real estate transaction that is essential to complete a successful home purchase are the many explanations you will need for what happens. The average home buyer may not be able to tell the difference between a routine occurence and a major issue. It’s the job of your representation to be able to articulately explain it to you in a way that empowers you to make the right decisions.
“The average home buyer may not be able to tell the difference between a routine occurence and a major issue. It’s the job of your representation to be able to articulately explain it to you in a way that empowers you to make the right decisions.”
I have repeated this in many of My thought pieces but it is always worth stating: The role of a real estate professional is complex, and many agents have difficulty explaining the role they play. If an agent has difficulty conveying what value they will add to you as a home buyer throughout the search, it should raise red flags. That does not mean they do not have your best interest in mind, however, you should understand what you are getting when it comes to service.
- Look for the Educator, Not the Salesperson
The used car salesman is a trope that makes me cringe, and I still hear it from time to time. I immediately think of Danny DeVito’s character in ‘Matilda’. I haven’t really seen much of that in My time in the industry, but it had existed at some point. Since we have been in a consumer-driven and service-based economy for quite some time, the free market has pushed these types out of the industry for the most part. That doesn’t change what I recommend looking for in an agent.
Real estate has never been about picking a house off the lot and driving it home. It’s complex, it’s confusing, and emotional to boot. Unlike a consumer good, one size does not fit all, and many variables and different contexts are going to dominate the average home search. A good agent is going to be able to educate you, and explain how certain factors will influence your decision-making and long-term effects for those decisions. It’s also largely about mitigating risks and coming to understand that mitigating risk doesn’t necessarily mean eliminating it.