How to Choose an Agent
People say that home buyers don't pay their agents -- agents get paid a commission by the seller. Either way, a home buyer's agent will be paid thousands of dollars to help that buyer find the right home. (Redfin agents don't get a commission, but are paid to delight their customers.) With all of that money paying for such an important service, why do so many buyers latch on to the very first agent they meet?
We've put together some tips to help you find an agent, and some questions you should ask to make sure that agent is the best fit for your needs.
Here are some common ways buyers find agents:
- Friends & Family: Maybe you have a friend or relative who happens to be a real estate agent. But just because you know the person well, doesn't mean she would be the best agent for you. Does she know the neighborhoods where you want to buy? Is she a tough negotiator? Will you be comfortable expressing your dissatisfaction, or even firing her if she can't get the job done? Hold a friend or relative to the same high standards you'd expect from any agent.
- Referral: Friends and family who recently bought a home can be a good way to find your own agent. Make sure that the agent is familiar with your favorite areas and can handle any special requirements you may have, such as a willingness to tackle short sales or bank-owned homes.
- Internet: Many agents and brokerages have their own websites. In addition, review sites such as Yelp.com can show you what other customers have to say about agents in your area.
- Open Houses: Any time you sign a guest registry for an open house, you're putting yourself on the showing agent's call list. We don't recommend this method for "finding" an agent, but if you do want to work with an agent you meet this way, do your homework (see Important Questions to Ask an Agent, below).
- Shameless Plug: Of course, we're partial to our own Redfin agents and partner agents. We carefully screen, test, and hire only the best agents, and we make sure they always put you first by posting public customer reviews after every single transaction. We pay our agents to delight customers, not close deals.
Tip!
There's something in real estate called procuring cause. Basically, it means that a buyer's agent gets paid because the buyer has signed a document that says "this is the agent who made my home purchase possible." That document is called a buyer's agency agreement.
The sooner you sign this agreement, the sooner the agent knows he has your business "locked up." If you change your mind later and want to work with a different agent, it can be very difficult to get a "divorce" from your agent -- especially if you end up buying a home that your ex-agent showed you first.
Most agents will require you to sign a buyer's agency agreement at some point. But before you do:
- Ask that the agent work with you for a short time without an agreement. You should both be clear as to how long this "trial period" will last.
- Find out how long you're bound by the agreement. See if you can shorten this window.
- Ask if there is an "escape clause" that lets you end the agreement if you're unhappy with your agent's service.
- Get everything -- especially changes you've requested -- signed and in writing.
- If you end up buying a home that you saw with an agent during this trial period, we recommend that you make your purchase through that agent.
A generation ago, it was hard to find information on an agent without first-hand experience. Aside from personal references and a call to the Better Business Bureau, there wasn't much you could do to get the real scoop on an agent's performance.
Today, you have plenty of ways to research an agent before you even meet her. Here are a few online resources we recommend:
- Yelp.com: Yelp.com lets customers submit reviews and ratings for businesses, such as real estate agents.
- Google: Just enter an agent's name into the Google search engine, and see what the internet has to say.
- LinkedIn: LinkedIn is a networking site for professionals. An agent's LinkedIn profile can give you an idea of their connections to other people in their profession, and may also include testimonials from colleagues or customers.
- State Licensing Board: You can learn about all about an agent from the licensing board in the state in which they operate. The information displayed may vary by location, but should include the agent's license status and number, as well as the name of their real estate agency. Some boards may also display disciplinary action and continuing education credits associated with the agent.
Before you decide to work with any agent, you should make sure he's the right person for you. To help you out, we've put together a list of essential questions to ask an agent before committing to work with him.