The concept of representation is very important to understand before you look for a realtor. For those who are looking at selling their home, there are seller’s agents. On the other side, buyer’s agents represent those wanting to purchase a property. Both buyer’s and seller’s agents are legally bound to representing you properly as soon as you have signed a contract with them.
Ask about to see if you know someone that can recommend a realtor. However, do make sure you look deeper as well. Take the time do a lot of research. You need to make sure that your realtor is experienced in what you are interested in. If you have a $200,000 budget, for instance, then you shouldn’t work with a realtor that sells $2 million properties. Always take the time to interview a potential realtor. Ask how they will represent you, what they cost, whether they have references and so on. You need to make sure your realtor understands your expectations. You have to make sure that your needs are clear. Finally, you need to actually like your realtor. You cannot trust someone you don’t like, after all. The last thing is that you need to find someone that is very experienced. It is nice to help people who are just starting, but considering the thousands of dollars involved in realty, you want someone who is able to handle that properly.
A number of things should be avoided as well. Don’t work with someone with whom you are friends or to whom you are related. There could be a huge conflict of interest on both sides, preventing you from working together properly. Also, your relationship could be tainted if things don’t work out. Don’t work with a realtor who has dual responsibility, meaning they represent both you and the other party. Don’t be afraid to go to a new realtor if you’re not happy with the service. However, if you do want to leave, make sure you do it properly. Do not tell any realtor that they will represent you if you are only asking for information. Always honestly tell them at which stage you are. After all, you expect honesty from your realtor as well.
Usually, seller’s realtors will ask you sign an exclusive agreement with them. This is completely normal, but it doesn’t mean you don’t have rights. If, for instance, you feel that the representation you are receiving is not proper, you able to terminate the contract. All it means is that you are only able to work with a single agent at the same time. As a buyer, you do not have to sing such an agreement. However, some realtors are starting to insist on it. Realtors have to earn a living and you need to understand just how they do that. Not all realtors are created equally. In most cases, you will find that a realtor is paid a commission on the final sale price of the property, but some work on flat fees. Before you agree to work with a realtor, therefore, you must understand which one of the two constructions they work with.