How to Select A Real Estate Agent
Buying a home involves making major decisions about where and how you will live for many years, and often has very important implications for your financial future.
For this reason, almost all home buyers enlist the services of a real estate agent or broker to help them with this complex transaction. A real estate agent is a person licensed by the state to handle real estate sales. A broker, also licensed by the state, is the person who may own a real estate company, or has overall responsibility for the agent's actions.
When choosing a real estate agent/broker, ask friends, neighbors and co-workers for referrals or visit "Open Houses" for properties already on the market. Not only will you get an idea of types of properties that are available at various prices, but you can observe a number of real estate agents on the job.
Before starting out, prospective buyers should remember that the agent or broker works for the seller of the property. The agent can offer his or her knowledge of the market and help in the preparation of contracts. But, the agent cannot tell a buyer what the seller's bottom line is, even if he or she has that information. Also, the agent is required to tell the seller anything you mention aloud; for example, how much you are prepared to pay during negotiations.
When you are ready to make an offer on a house, the agent will write up a contract that presents your offer and any conditions on the offer (e.g., a satisfactory inspection or sale of your current residence). The agent transmits the offer to the seller, as well as counter offers between you and the seller.
Some home buyers do not feel comfortable working only with an agent or broker who is receiving a commission from the seller, therefore they hire a "buyer's broker" to represent them. As with the seller's broker, a buyer's broker can research the area and type of house you're interested in. Beyond that, a buyer's broker can suggest sale prices and terms that may differ greatly from listing agreements, since he or she is obligated to represent the buyer's interest, not the seller's.
A buyer's broker can be paid a percentage of the sale price, a fixed fee, an hourly rate, or a combination of all three. Although buyer brokers are becoming more common, it may not be easy to find one in your area. Possible sources of brokers include professional real estate groups in your community; attorneys with active real estate practices; or brokers who advertise buyer representation services.
Check to make sure the the agent or broker you select is properly licensed to practice in New Jersey. Also contact your local BBB and consumer agencies to check the broker or agent's complaint record.
