When first looking for a home, many see real estate agents as a valuable tool. If you don’t understand the purpose of the real estate agent though and how they fit into your home buying experience, you might not be as prepared as you think. As an agent, I get asked a lot of questions about what I do, so I wanted to highlight the top five of those questions.
Where Can Real Estate Agents Work?
An agent is licensed by state and could technically practice real estate anywhere in that state, but they may only be comfortable working in a certain geographical area. Every area has different quirks as far as the real estate process goes, but it is important for an agent to really know the area as well so that they can educate the buyer if needed as far as school districts, upcoming zoning or city planning ordinances, or issues like shifting water tables, etc.
An agent can help a buyer purchase any home within the state that that agent is licensed in. It doesn’t matter what agent or company has the home listed. Some agents will even assist you in the purchase of For Sale by Owner or limited representation properties.
Should I Just Call the Listing Agent?
I often get calls from buyers who do not have a dedicated agent and are calling around to each of the agents who are listing the homes they are interested in to set up showings. It is better for you to pick an agent you want to represent you in a sale and have them reach out to the respective listing agents and schedule showings. They can cut down your work load by knowing which listings fit you best and by filtering out those already pending. Some listing agents are comfortable with representing both a buyer and a seller in a single transaction, however some are not. The buyer or seller may also not be comfortable with the agent representing both parties either.
Why Do Agents Refer Each Other?
When an agent refers you to another agent, they are usually getting a cut of that agent’s commission should they help you close a sale. A good agent will properly vet the agent before they refer you, but of course, not every client is a great fit for every agent. If you aren’t completely satisfied with the agent referred to you, let your referring agent know, so they can try to find you a better fit and still get their referral fee as well.
When Do I Pay My Agent?
When a seller lists a home, they sign a listing contract. That contract typically covers both their agent’s commission AND a buyer’s agent’s commission. This means that the buyer’s agent’s service is completely FREE to the buyer- so utilize them!
A real estate agent does not typically get paid (at all!) if they do not sell your home or help you close on the purchase of a new home. It doesn’t matter how far into the process you get. If the sale doesn’t close- they don’t get paid a dime. That means no matter how many showings they do, offers they write, open houses they throw, or how much money they pay out for things like professional photographers, marketing and advertising, they may not get paid at all and do not typically get reimbursed for any out of pocket expenses either. They only get paid when the home sells.
How Do I Know You’re the Right Agent?
As I said before, not every agent is going to be right for you. That’s why I like to discuss your priorities, needs, and questions up front, so we can figure out if I have the answers and resources you need. I go out of my way to advertise my clients’ homes, both in real estate listing publications and websites as well as on social media. I also go out of my way to find the right home for buyers, and I have a lot of experience in the region as a native to the area. If you want to find out if I’m the right agent for your home purchase or sale, please contact me by email, phone, or social media. I’d love to discuss it with you!