Things to remember when working with a real estate agent

By Melissa Wirkus

Everyone knows that buying a house can be a very confusing process if you do not educate yourself in advance.

Not only do you have to know the ins and outs of how a mortgage works, but you also have to know the unspoken rules for working with a realtor; which can be as complicated as a loan application itself.

An October 23, 2006 article by Elizabeth Weintraub of about.com, “Rules to follow when working with Realtors,” discusses some common rules to follow when conducting a home buying transaction with the help of a real estate agent.

“One of my clients knows how to safely remove a brain tumor from the base of her patient's neck, but she doesn't have a clue about real estate agent protocol. Nor does she understand why some listing agents have yelled at her. In her mind, she hasn't done anything wrong. She is only trying to find out information about a house for sale. It's not that difficult once you know a few simple rules.”

If you are unfamiliar with how buying a home works, the first thing you need to do is have your agent explain the basic rules about working with an agent, because they are actually much more in-depth than one might think.

The first thing you must understand is that your agent (and all agents for that matter) works on commission, meaning they are not paid a salary or hourly rate.

“Most real estate agents are paid commission. If an agent does not close a transaction, she does not get paid. Agents are not public servants and do not work for free. Do not ask an agent to work for you if you intend to cut the agent out of your deal.”

One of the most important things to remember is to not call the listing agent if you are working with a buying agent. This will upset a lot of people if you do this.

“Listing agents work for the seller, not the buyer. If you hire the listing agent to represent you, that agent will now be working under dual agency. If listing agents show you the property, the listing agent will expect to represent you. Listing agents do not want to do the buying agent's job. Let your buyer's agent do her job.”

Speaking of buyer’s agents, be sure that you communicate everything to your agent, meaning any expectations or exceptions. Then, get everything in writing.

“Expect to sign a buyer's broker agreement. It creates a relationship between you and the agent, and explains the agent's duties to you and vice versa. If you're not ready to sign a buyer's broker, do not ask that agent to show you homes. Otherwise, procuring cause will pop up. Ask your agent if she will release you from the contract if you become dissatisfied. If she refuses, hire somebody else.”

Once you have picked out an agent who is congruent with your needs, and you have thoroughly discussed your game plan for this transaction, be sure that you are truly ready to buy. If you want to shop around first, do not hire an agent quite yet.

“If you aren't ready to buy, you don't need a real estate agent. You can go to open houses by yourself; call listing agents for showings -- but be honest, say you are ‘only shopping’ -- ; look at homes online; but don't waste an agent's time if you aren't ready to act.”

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