How to Select the Right Real Estate Agent for You

The Roles of Different Real Estate Agents

Exclusive Buyer's Agents

As the HUD quote above points out, buyer's should look for an exclusive buyer's agent. The only way that a buyer can ensure they are receiving fiduciary duty from their agent is to have an exclusive buyer's agent.

Sub-agents

Few people know that up until the 1990s all agents that helped buyers were technically sub-agents of the seller. This meant that their fiduciary duty was actually to the seller not the buyer. Buyer brokerage, or legal representation of a buyer, was established to ensure that the buyer wasn't disadvantaged. However, sub-agency still exists in situations where the buyer doesn't have a signed buyer agency agreement with their agent.

Dual Agents/Agency

Another situation that can occur is you don't have an exclusive buyer's agent is dual agency. This is when either the same agent or brokerage represents both the buyer and the seller. Having a dual agent is something that buyers want to avoid because the agent's fiduciary duty lies with the seller. Dual agency, however is slightly different.

With dual agency there are still two agents that each have fiduciary duty to their own client. However, if you want to ensure that there is no possible conflict of interest by using the same broker on both sides of the transaction you'll want to look for exclusive buyer agencies that only represent buyers.

If you do find a home you want to make an offer on and it's listed by the same broker as you're agent you must sign a dual agency consent agreement before proceeding.  This agreement will explain dual agency and the steps that are taken to make sure the process is fair to both the seller and buyer. Read the consent agreement carefully before deciding if you want to agree to dual agency.

How to Find the Best Real Estate Agent

Seeing as there are hundreds of thousands of people who have a real estate license, you're likely to have a number of professionals in your area to choose from. However, the skill, knowledge and experience of agents varies greatly. Some are full-time professionals, some are part-time and some are actually employed in other industries.

The first step is to find local real estate agents. The Homes.org Agents section is a great place to start your search. There you will find agent profiles that list experience, education, certifications earned, market areas served and more. It's also a good idea to get recommendations from friends, family and colleagues who have bought a home in your area.

Questions to Ask Real Estate Agents

It's best to interview several real estate agents before deciding which one you want to work with. The process can take months so you'll want to make sure it's someone you're comfortable with and who's company you'll enjoy.  Below are some questions to ask during your interviews.

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    • Are you a REALTOR^®? Member of the National Association of REALTORS^® must follow a code of ethics.
    • How long have you worked in the real estate industry?
    • What market areas do you serve?
    • Are you a Certified Exclusive Buyer's Agent or Accredited Buyer Representative?
    • What hours are you available to work with?
    • Are you a full-time real estate agent?
  • Can you help me get pre-qualified?
    • How can I contact you?
    • Can you provide any referrals?

Susan Bartow, Real Estate Agent at Prudential California Realty, also suggests that buyers ask:

• What are your policies on us calling you after hours?
• What percentage of your business is geared toward working with only buyers?
• What's the most important thing that a buyer should be aware of in this market right now?

The Buyer Agency Agreement

If you want to avoid the sub-agent dilemma and secure yourself an exclusive buyer's agent then you'll need to sign an agreement with your agent of choice. The actual name of this agreement varies by state but it serves the same purpose across the country - to establish a legal agreement that acknowledges the agent will represent the buyer and that the agent's fiduciary obligations are exclusively with the buyer. You won't work with another agent and the agent represent your interests alone during the home buying process.

Below are some things to keep in mind when handling the buyer agency agreement.

• The agreement to work with an agent is a legally binding contract.
• The agreement must be in writing and include a start and end date.
• The agreement must be signed by all parties involved.
• The timeframe for working together is negotiable and you can decide on the duration.
• Make sure you understand all part of the contract before signing. If you have questions ask the agent or an attorney.

One thing to keep in mind is that real estate agents and brokers are prohibited from practicing law or giving legal advice. You'll need to contact an attorney with any questions on the legalities of contracts or the purchase of a property.

Now that you know what to look for, visit the Agents section to begin searching for local real estate professionals. You can find answers to some of the questions listed above and contact the agents to set up interviews.