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Buyer Report -
10 Questions To Ask Your Realtor®
(Download as an Adobe Document) |
| 1. Are you a full-time professional Realtor®? How long
have you worked full time in real estate? How long have you been
representing buyers? What professional designations do you have?
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Knowing
whether or not your Realtor® practices real estate on a full-time basis
can give you a piece of the puzzle in foreseeing scheduling conflicts and,
overall, his or her commitment to your transaction. As with any
profession, the number of years a person has been in the business does not
necessarily reflect the level of service you can expect, but it is a good
starting point for your discussion. The same issue can apply to
professional designations.
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| 2.
Do you have a personal assistant, team, or staff to handle different parts
of the purchase transaction? What are their names and how will each of
them help me in my transaction? How do I communicate with them? |
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It is
not uncommon for high real estate sales producers to hire people to work
for them or with them. They typically work on a referral basis, and, as
their businesses grow, they must be able to deliver the same or higher
quality service to more clients.
You may want to be
clear about who on the team will take part in your transaction, and what
role each person will play. You may even want to meet the other team
members before you decide to work with the team overall. If you needed
help with a certain part of your home purchase, who should you talk to and
how would you communicate? If you have a question about fees on your
closing statement, who would handle that? Who will show up to your
closing? These are just a few of the many important considerations in
working with a team.
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| 3.
Do you and/or your company each have a website that will provide me with
useful information for research, services, and how you work with buyers?
Can I have those Web addresses now? And who does the emails? Can I have
the email address now? |
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Many
homebuyers prefer to search online for homes and home buying information.
There are certain privacy and comfort levels that you might appreciate in
starting a preliminary search this way, and often it is just a matter of
convenience, having 24-hour access to information. By searching the
Realtor®'s and the company's Web sites, you will get a clear picture of
how much work you would be able to accomplish online, and whether or not
that suits your preferences. When I have a question, how quickly do you
respond to emails? |
| 4.
Will you show me properties from other companies' listings?
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Some
real estate companies do offer their buyers' agents a higher commission if
they are able to sell "in-house" listings. In such circumstances, there
can be added incentive to show you a more limited range of homes than you
might consider. If this is the case with your Realtor®, you should be very
clear on how this will impact your home search, if at all. You also should
determine it this affects how much your buyer agents fee will be.
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| 5.
Will you represent me or will you represent the seller? May I have that in
writing? How will you represent me, and what is the direct benefit of
having you represent me? |
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The
goal here is to ascertain to whom the Realtor® has legal fiduciary
obligation, which may vary from state to state or even locale to locale.
In the past, Realtors® always worked for sellers. Then the listing broker
was responsible for paying the agent or sub-agent that brought a suitable
buyer for the home. And even though the buyer worked 'with' an agent, the
agent still represented and owed their fiduciary duty to the seller.
An additional
situation in some states is dual agency. This is where the buyer decides
to have the listing agent prepare the offer for him. A knowledgeable buyer
may elect this situation which should be fully disclosed to all parties.
In some states it also affects the broker's/agent's fiduciary
responsibilities to the seller.
Although Realtors®
today almost always have a sense of moral obligation to buyers, this
original type of seller agency still exists in certain areas. In other
areas, a formal method of buyer representation called Buyer Agency exists
to protect buyers. Find out what is available in your area and make
yourself comfortable with the extent to which you will be represented.
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| 6.
How will you get paid? How are your fees structured? May I have that in
writing? |
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This is
an issue that can also be related to agency. In many areas, the seller
still customarily pays all Realtor® commissions through the listing
broker. Sometimes, Realtors® will have other small fees, such as
administrative or special service fees, that are charged to clients,
regardless of whether they are buying or selling. Be aware of the big
picture before you sign any agreements. Ask for an estimate of buyer costs
from any agent you contemplate employing. |
| 7.
What distinguishes you from other Realtors®? What is your
negotiating style and how does it differ from those of other Realtors®?
What geographic areas to you specialize in? |
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It
should be important to know that your Realtor® has unique methods of
overcoming obstacles and is an effective negotiator on your behalf, but
most importantly that your Realtor® can advocate for you in the most
effective ways.
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| 8.
Will you give me names of past clients who will give references for you? |
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Interviewing a Realtor® to help you buy a home can be very similar to
interviewing someone to work in your office. Contacting a Realtor®'s
references can be a reliable way for you to understand how he or she
works, and whether or not this style is compatible with your own.
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| 9.
Do you have a performance guarantee? If I am not satisfied with your
performance, can I terminate our Buyer Agency Agreement? |
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Understand that, especially in the heavily regulated world of real estate,
it can be increasingly difficult for a Realtor® to offer a performance
guarantee. Sometimes you may find a Realtor® who is willing to guarantee
that if you are dissatisfied in any way with their service they will
terminate your Buyer Agency Agreement. If your Realtor® does not have a
performance guarantee available in writing, it is not an indication that
he or she is not committed to perform, but rather that he or she is
willing to verbally promise some kind of performance standard. In fact,
Realtors® at Keller Williams Realty understand the importance of win-win
business relationships, and that the Realtor® does not benefit if the
client does not also benefit.
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| 10.
How will you keep in contact with me during the buying process, and how
often? |
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It's a
good idea for you to set your expectations reasonably in accordance with
how your Realtor® conducts business. You may be looking for an agent to
call, fax, or email you every evening to tell you about properties that
meet your criteria which are new on the market. On the other hand, your
Realtor® may have access to systems that will notify clients of new
properties as they come on the market (which could happen several times a
day or several times a week). Asking this extra question can help you to
reconcile your needs with your Realtor®'s systems, which makes for a far
more satisfying relationship. |
