Real estate agents can be great sources of information. Good agents can use their experience to give you valuable advice about price, neighborhood, comparable properties and even negotiating strategies. However, keep in mind that your agent is just an agent; even if you’re working with a buyers’ agent. Don’t give up your negotiating role or decision-making capabilities, or you may find yourself with a bad deal or a conflict of interests that creates a problem in your home-buying process. 

Watch Out for Your Own Interests

Theoretically, agents could be looking out for your interests. However, if you buy a home through a sellers’ agent, the agent is looking out for the sellers’ interests – not yours. Even a buyers’ agent may have conflicting interests, such as wanting to get a higher commission or offering more on a property just to make a deal. You can benefit from agents’ experience, wisdom and advice, but remember it’s your job to watch out for your own interests. Retain the decision-making role, and be the mastermind of the negotiation. Your agent can be your intermediary, but you must be the one controlling the negotiation.

Be Careful with Disclosures

Keeping in mind that you must watch out for your own interests, be cautious with your disclosures. Don’t tell your agent “I want to offer $135,000, but if the sellers won’t take it, I might go up to $150,000.” If you’re working with a sellers’ agent, or even just an agent who wants to pad his own commission, you may find yourself paying $150,000 from the outset without any negotiation.

Keep your ultimate game plan and negotiation strategy to yourself. Don’t tell your agent what you’re willing to compromise unless you’re more concerned about buying the home than getting a good deal. Even if an agent is working with your interests in mind, it’s possible to accidentally reveal information during negotiation. And if the agent doesn’t have your interests in mind, any extra information you provide can be used against you in negotiations.

During the home-buying process, you’ll probably ask for advice from a lot of people. You’ll poll your real estate agent, your lawyer, your family and friends; anyone who will listen, in most cases, including people only peripherally connected to your purchase. Be careful when you solicit advice about your home purchase, though. There are a lot of factors you should consider before you accept advice at face value, including the knowledge level of the people who are advising you, your reasons for seeking advice, and the basis from which people are advising you.

Are They Qualified to Offer Advice?

One of the most important things to consider when you solicit advice is whether the person you’re asking is qualified to offer it. Maybe you’ve got family who is a lawyer; however, if he or she is a lawyer who doesn’t practice real estate law, you might be better served to seek advice elsewhere. The same thing goes for polling friends, who might be willing to offer support but have no basis for their opinions, or even professionals involved in your deal. Make sure the person you’re asking is truly qualified to offer advice on the subject before you put too much weight on their opinions.

Is the Advice Based on Your Interests?

It’s easy to forget that everyone who looks at your home will have some bias. Advice you seek from a real estate agent might be based on the agent’s interest; for example, if the agent just wants to sell you the home to get his commission. Advice from friends may be empty words just to offer you support, when what you really want is critical advice. Or maybe your friends have their own bias about the home; for example, if one friend doesn’t like the neighborhood or the home’s layout, that bias could influence his advice to you without taking into consideration your interests. Make sure you understand the basis from which people are advising you, and take their advice with a grain of salt when needed.

Buying a home direct from owners can be a tempting option. Most buyers believe that buying direct from sellers eliminates the “middle man” of working with a real estate agent, and therefore makes the home a better deal or cheaper than buying through an agent. However, this isn’t always the case. Buying a home direct from owners can carry hidden costs, and you’ll also be expected to do a lot of the homework and research yourself. You can occasionally find a good deal when you buy direct from owners, but make sure you do the research and are getting what you think you’re getting.

You Give Up the Services Agents Provide

Keep in mind that when you opt not to use an agent, you’re giving up the services that an agent usually provides. Good real estate agents do a lot for their clients, from helping them find a home to dealing with negotiation, financing and closing. When you opt not to use an agent, you’re on your own to find listings, research the homes and set up showings. You’ll probably have access to fewer listings when you don’t use an agent, and you’ll spend a lot more time doing research.

Additionally, when you don’t use an agent, you’ll have to do your own negotiating – which means you’ll have to do a lot of research about the market, comparable home sales, and the home’s value; work that an agent typically does. Without doing this research, however, you could end up paying far too much for your home. You can do many of the things an agent does, but it will take you a lot of hours and there’s a cost in time.

Beware of Easy Seller Financing

If you do decide to buy a home directly from homeowners, beware of easy seller financing. Seller financing is often handled through a third-party investor, and may contain unfavorable terms or be offered on a problem property or overpriced property. When you buy directly from a seller, make sure you know if the terms you’re offered are favorable and whether you’re paying too much for a home.

Your real estate agent is one of the most valuable members of your home-buying crew. The right agent can help you find your dream home, get a great deal, advise you, and put you on the road to being a happy long-term homeowner. However, not all agents offer the same things, and what you think you’re getting from an agent may not be what you’re actually getting. In some cases, you may find that your real estate agent isn’t representing you at all – and then you have to be savvy about deals, homes, prices and negotiation. Make sure you know who your agent is representing, and be careful not to make assumptions about the advice you’re getting. 

Who Represents Whom?

When you’re working with a real estate agent, it’s essential to know if you’re working with a buyers’ agent or a sellers’ agent. If you’re buying, a buyers’ agent represents you as the buyer. The advice you receive is specific to your situation and with your best interests in mind. A sellers’ agent represents the seller of the home. Sellers’ agents won’t help you get the best deal or negotiate against the homeowner for price, because sellers’ agents are representing the homeowner. Make sure you know which kind of agent you’re working with when you choose a real estate agent. You may think you’re working with a buyers’ agent, but you could be wrong.

Agency Disclosure Laws can Protect You

Most states have disclosure laws that require real estate agents to tell you who they represent. In these states, if an agent represents the seller, they’re obligated to tell you that. Check to see whether your state has agency disclosure laws so you can make an informed decision about your agent and the home purchase. To protect your interests, your best option is to retain a buyers’ agent. If you do work with a sellers’ agent, take everything that the agent tells you with the knowledge that they’re promoting the sellers’ agenda. Also be aware that dual-agency exists; you may find an agent that represents both the buyer and the seller, but this usually doesn’t present the best option for either party.

To get the best deal and find the perfect home, it’s natural for buyers to give real estate agents all of the information about their needs, career, financing and other pertinent data. The more data that an agent has, the better he or she can assist the buyer to find the perfect home. However, it isn’t always in your best interest as a buyer to tell the agent everything. If your agent is working for the seller, information that you disclose may be used to get a better deal for the sellers – not for you. Make sure you know who the agent is working for, and know what information to disclose and what to keep to yourself.

Your Real Estate Agent may Disclose Information

Most home buyers don’t think about it, but real estate agents may disclose information during the purchase process. Sometimes this may be simple information that helps your cause, such as telling the sellers that you have financing in place. However, if your agent is actually representing the sellers, or even if you’re working with a dual-agency real estate professional, the agent could tell the seller things that strengthen their negotiation against you. When you work with a buyers’ agent, your agent keeps your information confidential.

Play Your Cards Close

When working with a real estate agent, buyers’ agents are preferable because they can give you information that could help your negotiation, while keeping your information confidential. If the buyers’ agent knows the sellers’ have to sell because they’re moving, that could help you get a better price on a deal. If you work without a buyers’ agent, make sure you keep your information confidential. Sellers’ agents or dual agents could use the information you provide to kill your deal, or prevent you from getting the best deal possible. For example, if you tell a sellers’ agent that you’re in a big hurry to move or that you love their home and would pay their asking price just to get it, the agent could disclose this information to the sellers.

So you’ve decided to buy a home and you intend to work with a real estate agent. How do you choose the right agent? Do you look in the phone book, call a well-known agency or browse websites? When you do find potential agents, how do you decide which one is the right agent for you? Avoid making a classic buyer mistake and picking an agent at random. Not all real estate agents are alike, and even a good agent might not be the agent for you. Do your research, and select an agent who can help you achieve your goals.

Avoid Picking an Agent from a Sign

When you’re choosing an agent, it can be tempting to select an agent who has listings in the neighborhoods where you want to buy. If you see many listings with the same agent’s name, you may decide to work with that agent because there are so many options to choose from. What you can’t see from a sign is whether the homes that the agent represents are the right homes for you, or if they’re indicative of the agents’ listings at all.

For example, if you’re looking for a four-bedroom home with three bathrooms and plenty of square footage, working with an agent who primarily represents small ranch homes in an affordable price range won’t get you the best selection. It’s important to remember that when you see an agent’s name on a sign, you don’t know anything about the agent. Random selection could be good or bad, but it’s a decision that affects the next 5 to 30 years of your life, so it pays to be thorough.

Do Your Research When Selecting an Agent

First and foremost, ask for referrals to get started finding an agent. People who have used an agent can give you a good idea of whether they’re happy with the agent’s performance. To narrow down a list of names, you could read the newspaper for the names of top producers. 20 percent of the agents do 80 percent of the work, so if you see an agent’s name over and over again on properties that meet your criteria, it might be a good choice. Finally, look for agents who provide high-quality services and have a proven track record. You owe it to yourself to find a good agent since home-buying is such an important long-term decision.

A real estate agent can be a great asset to help you find your dream home. However, when you decide to use a real estate agent, you should know what you’re getting. Not all agents are alike, and the services they offer may vary from agent to agent. If you’re looking for an agent with a specific style, or an agent who offers a certain type of services, you may need to shop around to find the perfect agent for your needs.

Not All Agents are Alike

Some home shoppers simply don’t have a realistic idea of what to expect from an agent. Many agents function only as a very basic guide between you and your potential homes. They can listen to your requirements, and show you homes that meet your criteria. An agent may function as a chauffeur and an “order taker,” but may not do much more than that for you. They may show you homes that meet your criteria, but if you’re not sure what your criteria is or should be, you may not have much luck with these agents. Other agents may offer more services, and may be a better fit for homebuyers who are looking for something more than a database of home listings.

What to Expect from an Agent

Some agents go above and beyond, and offer services that provide more value to home buyers. If you’re looking for that little bit extra, find an agent who can help you talk through your housing possibilities and priorities. A good agent can guide you to clarify and rank your potential choices. After helping you clarify your choices, an agent might suggest trade-offs and compromises that will match your priorities.

Some agents also help with the buying process. They may be able to get the sellers to prepare a Seller Disclosure Statement, which warns you about defects of the home or the neighborhood. Or they may be able to point out ways to improve a home to enhance its market value or better meet your family’s needs. A good agent will anticipate roadblocks and help you pave the way to a smooth home buying experience.

When you’re shopping for a home, a lot of things go into your decision to buy. You want to find the right home at the right price in the right neighborhood. You want something that provides an easy commute, and something that’s likely to appreciate in value so you can make a profit on the home purchase. It’s easy to rely on your real estate agent’s opinion to determine whether you’ve found the right home that meets your criteria. Resist the temptation to rely solely on your agent’s opinion, though, as it may not be an impartial source of information.  

Consider Your Agent’s Agenda

Real estate agents have an agenda. They want to sell you a home so they can earn their commission. Many agents genuinely care about their clients and want to ensure that their buyers find the right home. However, some agents are focused too closely on the commission check and don’t bother to do all of the homework to ensure clients are actually going to be happy with their home. Consider your agent’s agenda when you’re relying on advice. Take everything with a grain of salt, and keep in mind that you must be your own advocate when it comes to buying a home.

Become Your Own Expert

Becoming your own expert is the best way to ensure that you’ve got correct, up-to-date information about a neighborhood. You can start with what your agent says, but verify the data with the local police department, local school board and other local information-gathering sources. Sometimes agents mean well but have old information, or don’t know as much as they think they know about a given neighborhood or area. Verifying the information yourself gives you an opportunity to be certain that the place is right for you. Even if you believe your agent is honest and knowledgeable, it never hurts to become your own expert.

Home buying isn’t a uniform process. Your home buying experience may look nothing like someone else’s home buying experience. There’s no one-size-fits-all approach to buying, but there are some things you should consider when you’re selecting a real estate agent to help you buy your new home.  

Technical proficiency.

One option for selecting an agent is to go with someone whose technical proficiency is unmatched. You could go with someone who always executes perfect contracts, does a great job determining a property’s fair market value and is a hardball negotiator. This agent may not be particularly likable, but that’s not what you want in an agent, right?

Think again.

Personality.

Compare brute force agent with an agent who has a genuinely nice personality. This type of agent works with you to find your dream home because he or she wants you to get the right property. You may not get the lowest possible deal, and you may bump into contract or negotiation issues along the way, but this person is an extremely pleasant agent.

Personality is nice, but wouldn’t you rather have the tough agent on your side? That depends.

Hidden implications behind agent personality types.

Agent Number One, the brute force agent, isn’t pleasant to work with. Other agents would prefer not to deal with him, because he’s a hardball negotiator and he never gives ground. Buyers who are working with this agent may find their deal rejected simply because the brute force agent represents them.

Nice personality agent, on the other hand, has a lot of friends. He’s genuinely interested in the home buying process, and matching the right buyer with the right home. In negotiations, he works to be fair and gain concessions that make everyone happy. This agent is likely to get a counter-offer, at the very least, and is unlikely to be rejected out of hand.

Match your needs with an agent’s style.

Ultimately, you should match your needs with an agent’s style. If you want to make sure you get the best possible deal and have time to shop around, you might want to go with brute force agent. He’ll get you the deal you want, although you might have to make a few offers before you get accepted.

Mr. Personality agent is more pleasant all around, though, and you have a better chance of getting exactly the home you want with this agent. You may pay a bit more than you would with brute force agent, but you’re less likely to find your offer rejected out of hand, and you might be able to negotiate a deal where you wouldn’t have been considered otherwise.

Working with a buyer’s agent you can trust when you’re buying a home is an invaluable tool. A good buyer’s agent can help you negotiate your deal, make sure you’re being objective about the fair market value and provide you with valuable insights and tools throughout the process. However, the wrong agent can actually be detrimental to your cause. Beware of these red flags in agent negotiations. 

Your agent should offer you comparable home sales.

First and foremost, your agent should offer you comparable home sales and market valuation tools to justify the price of a home. While most agents are honest and have your best interests in mind, some agents might drive up the price of a home just to increase their commissions. If your agent can’t provide you with comparable home values and market valuation tools, question how your agent is arriving at the suggested price and whether your agent actually has your interests in mind. It could be time to find a new agent.

Agents shouldn’t make moral judgments.

One reason that agents can retain their objectivity is that agents shouldn’t make moral judgments. A good agent doesn’t get tied up in the reasoning for sellers’ positions; as long as the position is legal, the agent should just consider it as a negotiating position. Retaining this objectivity enables agents to negotiate well and make good deals, whereas losing this objectivity can lead to problems.

Your agent shouldn’t get emotionally involved.

Finally, your agent shouldn’t get emotionally involved in your deal. One of the most valuable things that an agent provides is objectivity, and losing that objectivity drastically reduces an agent’s effectiveness. Remember that agents are human. It’s possible for agents to loose their cool in the heat of negotiation. However, agents should cool down and get back to negotiating effectively, or it might be time to find a new agent.