Finding the Right Buyer's Agent for You

Last week I talked about why should use a buyer's agent. But how do you find a good one?

The first, and most important, step is to ask around. We do a lot of referral business and chances are your friends or family have used an agent they think is worth recommending.

If you still have a choice to make, one way to narrow your results down is by looking for agents who have the ABR, or Accredited Buyer Representative, designation. This means that they have received additional in-depth training on how best to serve a buyer's interests in matters such as determining the offer price and contract negotiations. This can be really helpful to you, especially if you are trying to negotiate closing costs and repair costs. It also lets you know that this is an agent genuinely interested in working with buyers, as opposed to an agent who is more concernced with listings. You can find ABR designated agents in your area at the ABR/REBAC website.

Once you have found some ABR designated agents, it's time to interview them. Remember, this is a big purchase, and you have the right to choose who represents you. When you talk to potential agents, here are some good questions to ask:

• How long have you been licensed?

And longer isn't necessarily better. New agents are hungry agents and will usually be much more willing to drive you anywhere you want to go and show you as many homes as you can handle. On the other hand, more seasoned agents have the advantage of knowing more about neighborhoods and having more contract negotiation experience.

• Do you work alone?

This is an important question, because some agents, especially big time ones, have assistants or team members who show clients property, and even negotiate contracts for them. You want to make sure the agent you first meet and feel comfortable with is the one who is actually going to be driving you around and negotiating for you. If the agent does work with an assistant or team members, ask to meet the person or people you will be working with on a regular basis.

• What role will you play in my home buying process?

Some agents work harder than others, and you want a hard worker. Here is a list of what a typical buyer's agent will do for you throughout your transaction:

• Help you find information on mortgages and mortgage officers.
• Guide you through the pre-approval process.
• Provide you with copies of all forms that you will required to sign as part of submitting an offer and take time to answer any questions you have about them.
• Search the MLS based on your specifications and send youistings that meet your search criteria.
• Get you more information about homes, subdivisions, neighborhoods and schools.
• Schedule and coordinate all showing appointments.
• Show you a slew of houses.
• Help you make an informed offer by researching comparable properties that have sold in the same neighborhood/area as the home you are interested in.
• Negotiate with the listing agent on your behalf.
• Represent your interests only -- not the seller's.
• Help you select a home inspector and guide you through the home inspection process.
• Schedule the closing.
• Facillitate communication between the listing agent/sellers, your mortgage company, and the title/closing company, so that your home closes on time.
• Go to closing with you to handle any last minute issues which may arise.

This is not an exhaustive list. and you will find agents that go above and beyond this list. You will also find agents who fall short of it. The important thing is that you know what to expect from them up front.

• Do you require your clients to sign a Buyer's Representation agreement and, if so, what does it entail?

Many states, like Tennessee, require a Buyer's Rep agreement to be signed before or at contract. And this is a good thing, as it protects you and the agent. It is up to the individual agent in our state as to whether they use an exclusive or non-exclusive agreement. Generally speaking the exclusive agreement locks you into the agent for a period of time, whereas the non-exclusive does not. Both forms have a section for how an agent will be compensated should the buyer choose to purchase a for sale by owner home where the seller is not offering a cooperative commission to buyer's agents. This is usually left to the agent's discretion, but he or she will have to fill this section in before you sign. Some will require that a buyer agree to pay them a certain percentage of the sales price or a flat rate if they buy a FSBO with a non-cooperative seller. Sometimes an agent will also stipulate what, if any, compensation he or she expects if they show you property for a period of time and you decide not to buy anything. This is not that common is our area, but with rising gas prices, I've heard of more agents writing this into their buyer rep agreement. Some even charge a gas fee per day or week of showings.

• What if I find a FSBO property?

As mentioned above, your agent should lay out their FSBO compensation policy in the buyer rep agreement. However, some agents aren't fond of FSBOs or simply don't want to deal with them and will tell you that up front. It's much better to know where your agent stands up front.

• What happens if I decide I don't want to work with you anymore?

It happens. You work with an agent for a while and you either a) find out they're a total creep, b) find another agent you like better, or c) just don't jive as well as you thought. Personality conflicts happen and even if you signed an exclusive buyer rep agreement, it should be possible for the agent's broker to reassign you to another agent within the company. These policies differ from brokerage to brokerage, so make sure you find out what your options will be up front.

Finally, make sure you feel comfortable with your new agent. This should be a person you like and trust a lot. Not only is he or she going to be helping you make one of the biggest purchases of your life, you're also going to be spending a whole lot of time in the car with them.