Rochester MN - Buying 
Ten Questions To Ask Your Realtor®
- 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?
- 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?
- 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?
- Will you show me properties from other companies' listings?
- 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?
- How will you get paid? How are your fees structured? May I have that in writing?
- 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?
- Will you give me names of past clients who will give references for you?
- Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our Buyer Agency Agreement?
- How will you keep in contact with me during the buying process, and how often?
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.
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.
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?
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.
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.
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.
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.
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.
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.
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.
Copyright - Keller Williams Realty, 2005
