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Here’s How You’ll Know You’ve Found the Right Agent

Here’s How You’ll Know You’ve Found the Right Agent
By: HouseLogic

Published: February 27, 2018

A great real estate agent is like an Oprah for living your best real estate life.

For every journey, there is a guide. To explore the West, Lewis and Clark had Sacagawea. To navigate his magical powers, Harry Potter had Dumbledore. And to discover our best lives, America has Oprah.

Then there’s the all-too-real journey of buying a home. For that, you have an Oprah of your own: your real estate agent — a licensed professional who’s familiar with local home values and neighborhood perks, understands real estate trends, can write an offer on your behalf, and who negotiates with home sellers so you don’t have to.

Think of your agent as a therapist/consultant for your home search. A collaborator. A co-conspirator. A mentor. Someone who amps up your confidence and counsels you through big decisions (teamwork makes the dream work, after all). And, someone who wants you to find a house you can be happy in because they’re invested in your happiness.

If the housing market doesn’t line up with your needs and budget, your agent will go back to the drawing board with you. They interpret raw housing data through the filter of your unique search, then tell you what’s important and why. They help you map the path to your goal, and connect you with trusted experts who can get you into your dream home. (Cue selfie of you drinking wine in your new living room. First like on Instagram? Probably your agent.)

That’s a lot of responsibility. And a lot of pressure. There’s obviously a lot at stake: money and time, of course, but also your happiness. So reach out to an agent sooner in the process rather than later, and you’ll be on the fast track to picking out paint swatches for your new kitchen.

Agents, Brokers, and REALTORS®: What’s the Difference?
“Agent” is a catchall phrase that is used, in casual conversation, to describe the three types of professionals who buy and sell real estate: agents, brokers, and REALTORS®.

No, they’re not really the same. Yes, you should care about what makes them different. Here’s a breakdown:

A real estate agent is a licensed professional who helps people buy, sell, rent, or invest in homes. To become an agent, a person must take pre-licensing training from a certified institution (these vary from state to state) and pass their state’s real estate licensing exam. Once they have their license, an agent must affiliate themselves with a real estate brokerage.

Some agents specialize in representing buyers, some specialize in representing sellers. Some do both. An agent who represents both the buyer and the seller in the same real estate transaction is called a dual agent. By law, a dual agent must disclose dual agency to both parties. (If an agent is seeing other people, you obviously need to know.)

A real estate broker is a professional who has additional education beyond the agent level, as required by state law, and who has passed a broker’s exam. In some cases, brokers also have more years of experience than agents. The biggest difference between a broker and an agent is that a broker may work independently. An agent must be overseen by a broker.

A REALTOR® is a broker or agent who belongs to the National Association of REALTORS® (NAR), the largest trade group in the country. (Full disclosure: NAR publishes HouseLogic.com). A REALTOR® commits to following a strict Code of Ethics intended to protect buyers and sellers; for example, REALTORS® pledge themselves to protect and promote the interests of their client. Agents and brokers who are not NAR members can’t call themselves REALTORS®. There are more than 1 million REALTORS® in the United States. You can use realtor.com®’s Find a REALTOR® tool to connect with one in your area.

In most cases, using an agent, broker, or REALTOR® won’t cost you a penny because the seller typically pays both the listing agent and buyer’s agent’s commissions. However, some buyers’ agents request a representation fee from the buyer. That’s rare.

The Best Agent for You Depends on … You
Before you seriously partner with anyone, you’ll probably survey family, friends, and trusted acquaintances for at least some input. Finding a real estate agent is no different: A great starting point is to ask your inner circle and neighbors for recommendations. According to recent NAR research, 52% of buyers 36 and younger found their real estate agent through a referral.

Then there’s the internet.

Each of the major property listing websites — realtor.com®, Zillow, Redfin, and Trulia — has an agent-finder tool that lets you search for agents in your area. These property sites also collect reviews and ratings from an agent’s past clients, which gives you insight into an agent’s reputation. Keep in mind, though, that the sites vary in their policies about whether agents can edit or remove reviews. (Like with Yelp, use your own discretion.)

The sites also show an agent’s sales history, so you can see how many homes a person has sold. In general, it’s best to choose an agent who has a large number of sales under his or her belt (a sign they’re committed to real estate work). Perhaps even more important: an agent who has sold homes at the price point and in the neighborhood where you’re looking to buy — a sign they understand the local market.

Whatever you do, don’t rely on online listings alone. Always interview prospective agents — at least three — in person. A meet-and-greet will give you the perspective you need on the agent’s personality and style. Is this someone you’ll like working with? Who has a sense of humor? Who has your back? Who communicates in the ways you want to be communicated with? Best to find out in person.

Explore More Topics:

Find an Agent & View Homes

Buy a Home: Step-by-Step

How to Know If An Agent Is Knowledgeable
Once you’ve gathered all the information, listen to your gut: It won’t steer you wrong about who’s the best agent for you.

But, that said, there are a few qualities you’ll want to look for in any agent (your gut would agree):

Local expertise. Does this person know their stuff about neighborhood home value trends, shops and restaurants, schools, commute times, and geographic factors such as floodplains? These things are important, especially if you’re looking for a home in a new city or town. If the agent seems lost or like they’re winging it, keep looking.
Responsiveness. You’ll have a lot of questions, and will be asked to produce documents at certain steps during the buying process. Think about how available you want your agent to be, and how quickly you want him or her to respond. One way to figure that out? Contact a prospective agent online or by phone and see how long it takes them to reply. If you don’t hear back within a timeframe that works for you, it’s probably best to move on.
Reputation. This is when to consult your inner circle again. The agent-finder tool mentioned above can also help. In addition, you’ll want to verify the agent’s license; search “[state] real estate license lookup” to find a resource for your state. If you want to confirm whether an agent is a REALTOR®, you can call NAR at 1-800-874-6500.
There are a number of professional designations that indicate an agent has obtained additional education beyond their licensing work. An accredited buyer’s representative (ABR®), for instance, is someone who specializes in working with home buyers and has taken a course on buyer-client relationships. You can search the different types of designations here.

Don’t Be Afraid to Ask a Lot of Questions
Congratulations! You now have a list of agents you like based on their stats, and you’re ready to get to know the finalists. Binge a few episodes of “The Bachelor” for pointers — just kidding, don’t do that.

What to really do: Schedule interviews with the top three agents, at least. During each conversation, your goal is to understand the agent’s experience, personality, and working style.

Here are 13 questions that will help the vetting:

How many years have you been in the business? Having more experience doesn’t guarantee that someone is a great real estate agent, but a lot of the business is learned on the job.
How many homes have you sold in the last year? Volume isn’t the most important factor when choosing an agent, but you want someone who is active in the industry. Also, the more transactions an agent has under their belt, the more adept the person should be at solving complicated problems that can crop up during a home sale. Remember: Your transaction is unique.
How will you help me determine my needs and priorities? The agent’s first task is to help you identify your list of “musts” and “wants” — the home features that you need, versus the features that you’d like to have but can live without.
Is your real estate license in good standing? You can also check with your state’s Real Estate Commission to confirm the agent has no disciplinary actions.
How will you stay in touch with me? Your agent’s communication style should align with yours. If you prefer to be contacted via text when new listings crop up, make sure your agent is able to do that.
What neighborhoods do you specialize in? You want an agent who’s intimately familiar with the neighborhood(s) you’re interested in. Another way of framing this question is to ask, “How many homes have you sold in this neighborhood in the last year?”
What price range do you typically work in? In addition to being a neighborhood expert, your agent should do a large portion of their business with home buyers in your price range. It’s important because challenges and negotiation strategies can vary based on what type of home you’re buying.
How many other clients are you working with? You want someone who can give you quality, {{ start_tip 72 }}one-on-one customer service{{ end_tip }} when you buy your first home. If the agent seems spread thin, it’s probably because they are.
How are you a good agent for first-time buyers? First-time home buyers face specific challenges. Every buyer has a unique transaction. Good agents can explain what you should expect and how they’re going to help you navigate your special circumstances.
How will you find homes that match my criteria? Seasoned real estate agents don’t just use the local Multiple Listing Service (MLS) — a regional database of registered property listings — to help home buyers find homes. They also keep track of listings through colleagues, door-knocking, and canvassing neighborhoods to find the right properties for their buyers. They’ll also work their industry connections.
Have you ever recommended that a buyer not buy a property? Why? An agent should work in your best interest, which means being honest with you about when to pass on a house that will not meet your needs — even if you’re starry-eyed about it. It’s your choice, obvs, but they should empower you to make a sound decision.
Do you have a list of recommended vendors who can help me get a mortgage, inspect a home, and so on? To buy a home, you’re going to need other important players on your team — specifically a mortgage lender, home inspector, settlement/title company, and attorney. An experienced agent has already developed relationships with reputable pros, and should provide you with several references for each; though it’s ultimately your decision to choose who you want to work with.
Can you provide contact information for your three most recent buyers? Past clients can offer valuable insight into an agent’s skills. Don’t just ask an agent for references, or you’ll get three pre-vetted clients who are guaranteed to sing their praises. Instead, ask for phone numbers and email addresses of the agent’s three most recent buyers. Contact those people directly to learn about their experiences.
Whew, you made it through the interviews. (Are you thirsty? We could use a glass of water.)

By now, there’s likely one agent left standing. Someone you can trust. Someone who listens. Someone who knows more about real estate than you, but who also really cares about finding your house.

Now that you’ve got a partner in buying a home, it won’t be long before you own it.

MBS RECAP: Bonds Extending Last Week’s Holiday

Posted To: MBS CommentaryVolume may be picking up for the bond market following the typically quiet Thanksgiving trading week, but you wouldn’t know it by looking at the movement in the charts. Yields are still dead flat in the context of the past few weeks. In fact, they weren’t even able to trade outside last Friday’s range. It’s not as if it’s some great crime for bonds to be flat. It’s also not as if that flatness guarantees the next move. In the current case, the absence of change is grounds for some mix of anxiety and excitement as rates are on the edge of re-entering the lower range from the summer months. Either that, or they’re on the verge of bouncing back toward long term highs. It all depends on what happens next. As for today’s specific motivations, it’s hard to delve…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Loan Limits Increase to $484,350

Posted To: MND NewsWireGiven the rapid run-up in home prices over the last year, it’s no surprise that loan limits will also be going up in 2019. The Federal Housing Finance Agency (FHFA) announced that the maximum conforming loan limits for mortgages eligible for acquisition or guarantee by the two government sponsored enterprises (GSEs) Freddie Mac and Fannie Mae will be $484,350 . The conforming loan limit as established by the Housing and Economic Recovery Act (HERA) is reviewed each year and adjusted as necessary to reflect the change in the average U.S. home price. The new limit represents a 6.9 percent increase over the $453,100 limit for 2018, the percentage by which FHFA’s Housing Price Index (HPI) for the third quarter of 2018 increased on an annual basis. The new limit is considered the baseline for conforming…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Mortgage Rates Hold Recent Lows

Posted To: Mortgage Rate WatchMortgage rates avoided returning to reality yet again today. In other words, rates were almost perfectly unchanged for the 4th straight business day. These patterns (or lack thereof) are fairly typical of the thanksgiving time frame, but the return of volatility is a bit of a moving target after that. Clearly, we’re not there yet. That’s a good thing in the recent context because it means rates are still operating at their lowest levels in more than a month. It’s a bit more unpleasant in the broader context because it means rates are showing little desire to move much lower from their highest levels since 2011 (seen at the beginning of the month). In non-rate-related news, the FHFA–Fannie Mae and Freddie Mac’s regulator–announced higher conforming loan limits , from $453,100 to $484,350….(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Black Knight: Delinquencies See Sharp Decline in October

Posted To: MND NewsWireMortgage delinquencies spiked in the September “first look” report from Black Knight, but that was followed by a swift reversal in October. The company’s latest report notes a sharp decline in early stage delinquencies and a downturn in serious ones as well. Loans that were more than 30 days past due but not in foreclosure fell 8.2 percent month-over-month and were nearly 18 percent lower than in October 2017. This translates into 165,000 fewer delinquencies than in September and an improvement of 378,000 year-over-year. These changes leave 1.884 million loans in the national non-current bucket. Serious delinquencies were down as well. Within the total number of loans that are overdue just shy of a half million are 90 days delinquent but not in foreclosure , a 12-year low. This is down by 14…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Sales, Branding, Non-QM Products; “Don’t Fight the Fed” When it Comes to Rates

Posted To: Pipeline PressWill today or tomorrow bring the 2019 Freddie and Fannie loan limit change announcement? Stay tuned, as it usually released soon after Thanksgiving. Is it arguably less impactful since many jumbo programs have lower rates than conventional conforming products since they don’t have guarantee fees, fit nicely into some portfolios, and have lower compliance costs to originate. One thing is clear: lender M&A continues. For example, yesterday we learned that Firstar Bank has reached an agreement to acquire the assets of Firstar Bank has reached an agreement to acquire the assets of Leader Mortgage . And unlike GM’s plans to “idle” five factories in North America and cut some 14,000 jobs, lenders are hiring: Lender Products and Services Ethos Lending is being called “the…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

MBS Day Ahead: Do Bonds Care About Oil’s Slide? Also: New Loan Limits

Posted To: MBS CommentaryOil prices are always interesting to consider when it comes to bond markets. After all, oil is a major cost input for the economy. Even the “core” inflation readings, which disregard oil prices, are unable to account for oil’s impact on the price of everything else. Point being, if fuel is being burned to transport all the goods that still show up in core inflation readings, oil is still having an impact. From there, of course we can consider that bonds are supposed to care about inflation. They generally do, apart from the moments in history where very few market participants were remotely concerned about it, regardless of the numbers (2012 and 2016 come to mind). But now that core inflation has edged back to (or above, depending on when you look) the 2% level, bond markets are…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Home Prices Still Increasing – Just a Little Slower

Posted To: MND NewsWireThe views about the direction of home prices diverged slightly in September, as those reported in the S&P CoreLogic Case Shiller indices slowed for the second month in a row while those from the Federal Housing Finance Agency (FHFA) for both September and the third quarter mostly kept chugging along. The Case-Shiller National Home Price index which covers all nine U.S. census divisions slowed from a 5.7 percent increase in August to 5.5 percent. On a non-seasonally adjusted basis the index gained 0.1 percent and was up 0.4 percent after adjustment. The monthly appreciation in August was reported at 0.2 percent unadjusted and 0.6 percent afterward. The slowing was not as evident in the two city composite indices. The 10-City posted an annual increase of 4.8 percent , down from 5.2% the prior…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Origination, Non-QM, LO Products; U.S. Economy Continues to Chug Along

Posted To: Pipeline PressI want a free vacation! I want a free fancy car in the garage in my newly-built McMansion! Apparently, due to sagging sales, with some builders I can indeed have those things, and more. Builders in many locales are proving that, regardless of which administration is in power, or who takes credit for some aspect of the economy doing well, business cycles are a fact of life . Lenders know a lot about business cycles, and the number of nonbank mortgage lenders was down by about 3.5% at midyear from the end of 2017, according to the Conference of State Bank Supervisors. (Speaking of “wants,” if you want an “Air Selfie” for Christmas, aka mini-drone, here you go .) Lender Products and Services “Lendsnap is the favorite Digital Mortgage app for non-QM Lenders. Our partners…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

MBS Week Ahead: Year-End Momentum Decisions Approaching

Posted To: MBS CommentaryMarkets will be getting back into the swing of things (probably slowly) today after the Thanksgiving holiday. As we discussed excessively last week, nothing about the last 3 or 4 trading days will necessarily have any bearing on how this week plays out. We may well see a lopsided battle between buyers and sellers resulting in a quick move back toward recent high yields, or an unexpectedly strong move to the lowest yields since September. If we get the weak move, it would mean that bonds opted to bounce fairly perfectly right where they bounced in late October (3.03% in terms of 10yr yields). If we get the strong move, it’s meaning would depend on what else is going on in other markets. For instance, if bonds rally simply because stocks are tanking, that would be different than bonds rallying…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.